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Section 16(d), payment within 180 days

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recipient fails to pay his contractor (liability)even after 180 days however advance with the contractor is more than the liability .Will the ITC b reversed
Replies (2)
No... Section 16(2) for 180 days applicable on outstanding. not required to reverse.
If advance and liability are different i. e. for diff diff goods or services or have been treated separately in books, as per my view, ITC is required reversal.
Although this provision applicability is little ambiguous industry wide, people interpret differently.

Regards


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