Reversal of common ITC as per R/42 on Incentive received in Form of Foreign Tour

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Whether incentive received by the Distributor in the form of Foreign Tour from the Principal Supplier (say for eg. manufacturer) will be treated as Exempt Supply. If yes, then whether thre will be reduction of common ITC as per R/42 ? - Reply By Shilpi Jain - The Reply = Not an exempt supply. Incentive is in the nature of a discount. No reversal of credit for the distributor. Reduction of common I .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... TC? not clear in query. - Reply By ANKIT SHAH - The Reply = If the incentive was received by way of a CN, then agreed that it is a discount. Here, the incentive is in the form of a Foreign Tour on which TDS is deducted by the Principal Supplier which forms part of revenue in Form 26AS because of which it is taken under the head Other Income ; hence the query whether such incentive which is booked .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... under the head Other Income will be treated as Exempt Supplies under GST. If it is to be treated as an exempt supply whether the reversal of ITC on common expenditures in P L A/c will be applicable as per Rule 42 of the CGST Rules ? - Reply By KASTURI SETHI - The Reply = 'Incentive' is called incentive irrespective of the mode of payment whether in kind or in cash or credit notes or in any .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... other form. - Reply By KASTURI SETHI - The Reply = The issue is not litigation-free. Recently one of my clients has received SCN on the incentive issue. - Reply By vijay kumar - The Reply = There is no supply by the distributor in the case of foreign tour done by him which is organized by the principal supplier as incentive. Hence the question of exempt supply does not arise, in my view and hence .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Rule 42 reversal will not arise. - Reply By KASTURI SETHI - The Reply = I agree with Sh, Vijay Kumar Ji. SCNs are being issued regularly on the incentive issue by the department. - Reversal of common ITC as per R/42 on Incentive received in Form of Foreign Tour - Query Started By: - ANKIT SHAH Dated:- 28-12-2024 Last Replied Date:- 31-12-2024 Goods and Services Tax - GST - Got 6 Replies - GST - .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X