Input Tax Credit ( ITC ) and Job Work - Practical Issues
Q 1. When the goods of the principal are directly sent to the premises of the job worker, whether ITC can be taken by the said principal? Ans. Yes. As per section 19 (2) The principal shall be entitled to take ITC on inputs, even if the inputs are directly sent to a job worker for job work without being first brought to his place of business. The principal should avail the ITC based on proper tax invoice as issued under section 31 when the goods are delivered at the premises of the job worker by the supplier. Q 2. What is the time limit for claiming ITC on capital goods sent from the principal’s place of business to job worker for job work? Ans. As per section 19 (4) subject to such conditions and restrictions as may be prescribed (Rule 45), The principal shall be entitled to take ITC on capital goods sent to a job worker for job work. As per section 19(5) Notwithstanding anything contained in section 16(2)(b), The principal shall be entitled to take ITC on capi