Amendment status not verified — confirm the current text below against the official source.
(l) The detoils of every credit note reloting to outword su pp ly furnished by o registered person (hereofter in this section referred to osthe "supplier') for o tox period sholl, in such monner ond within such time os moy be prescribed, be motched-- Motching, reversol ond recloim d reduction in output tox liobility. t66 (o) with the corresponding reduction in the cloim for input tox credit by the corresponding registered person (hereofter in this section referred to os the 'lecipient') in his volid return for the some tox period or ony subsequent tox period; ond (b) for duplicotion of cloims for reduction in output tox liobility. (2) The cloim for redudion in output tox liobility by the supplier thot motches with the corresponding reduction in *re cloim for input tox credit by the recipient sholl be finolly occepted ond communi- coted, in such monner os moy be prescribed, to the supplier. (3) Where the redudion of ouFuttox liobility in respect of outword supplies exceeds the corres- ponding reduction in ttre cloim for input tox credit or the corres- ponding credit note is not declored by the recipient in his volid returns, tre discreponcy sholl be communicoted to both such persons in such monner os moy be prescribed. (4) The duplicotion of cloims for reduction in output tox liobility sholl be communicotid to the supplier in such monner os moy be prescribed. (5) The omount in respect of which ony discreponcy is communicoted under sub-section (3) ond which is oot rectified by the recipient in 124 cotegory is used by o registered person for moking on outword toxoble supply of the some cotegory of goods or services or both or os on element of o toxoble composite or mixed supply; (ii) membership of o club, heolth ond fitness cente; (iii) rento-cob, life insuronce ond heolth insuronce except where - (A) the Government notifies the services which ore obligotory for on employerto provide to its employees under ony low for the time being in force; or (B) such inword supply of goods or services or both of o porticulor cotegory is used by o registered person {or moking on outword toxoble supply of the some cotegory of goods or services or both or os port of o toxoble composite or mixed supply; ond (iv) tovel benefits extended to employees on voco- tion such os leove or home trovel concession. (c) works conroct services when supplied or construdion of on immovoble property (other thon plont ond mochinery) except where it is on input service lor further supply of works controct service; 123 Provided further thot the restriction of fifty percent sholl not opply to the tox poid on supplies mode by one registered person to onother registered person hoving the some PermonentAccount Number. (5) Notwithstonding onything con- toined in sub-seaion (l ) of sedion l6 ond sub-section (l ) of sedion 18, input tox credit sholl not be ovoiloble in respect of the following, nomely:- (o) motor vehicles ond other conveyonces except when they ore used- (i) for moking the {ollowing toxoble s u pplies, nomely : -- (A) furher supply of such vehicles or convey- onces; or (B) tronsportotion of possengers; or (C) importing troinlng on drMng, flying, nwige ting such vehicles or conveyonces; (ii) for tronsportotion of goods; (b) the following supply of goods or services or both:- (i) food ond beveroges, outdoor cotering, beouty treotment, heolth ser- vices, cosmetic ond plostic surgery except where on inword supply of goods or services or both of o po rticu lo r 122 (2) Where the goods or services or both ore used by the registered person pordy for effeaing toxoble supplies including zero-roted supplies under this Act or under tle lntegrqted Goods ond SeMces Tox Act ond portly for effecting exempt supplies under lhe soid Acts, the omount of credit sholl be restricted to so much of the input tox os is otfibutoble to the soid toxoble supplies including zereroted supplies. (3) The volue of exempt supply under sub-sedion (2) sholl be such os moy be prescribed, ond sholl include supplies on which the recipient is lioble to poy tox on reverse chorge bosis, trons- octions in securities, sole of lond ond, subject to clouse (b) of porogroph 5 of Schedule ll, sole of building. (4) A bonking compony or o finonciol institution including o non-bonking finonciol compony, engoged in supplying services by woy of occepting deposits, extending loons or odvonces sholl hove the option to either comply with the provisions of sub-section (2), or ovoil of, every month, on omount equol to fifty per cent. of fie eligible input tox credit on inputs, copitol goods ond input services in thot month ond the rest sholl lopse: Provided thot the option once exercised sholl not be withdrown during the remoining port of the finonciol yeor: ri . l2t doys from the dote of issue of invoice by the supplier, on omount equol to the input tox credit ovoiled by the recipient sholl be odded to his output tox liobility, olong with interest thereon, in such monner os moy be prescribed: Provided olso thot the recipient sholl be entitled to ovoil of the credit of inputtox on poyment mode by him of the omount towords the volue of supply of goods or services or both olong with tox poyoble thereon. (3) Where the registered person hos cloimed depreciotion on the tox component of the cost of copitol goods ond plont ond mochinery under the provisions of the lncome-tox Act, 1961, the input tox credit on the soid tox component sholl not be ollowed. (4) A registered person sholl not be entitled to toke input tox credit in respect of ony invoice or debit note for supply of goods or services or both ofter *re due dote of furnishing of the return under section 39 for the month of September following the end of {inonciol yeor to which such invoice or invoice reloting to such debit note pertoins or lurnishing of the relevont onnuol return, whichever is eorlier.