We have received advance from client in Aug-2017. We also have input tax credit for the same month. So tax liability on advance received can be adjusted against our input tax credit?
Rudrayani Shedjale (Assistant Accountant) (751 Points)
12 September 2017We have received advance from client in Aug-2017. We also have input tax credit for the same month. So tax liability on advance received can be adjusted against our input tax credit?
Vinod Araveti
(Practicing CA)
(1180 Points)
Replied 12 September 2017
yes, you can adjust the tax liability on advance with input tax credit.
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 12 September 2017
thank you for the information.
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