EXAMPLE-126

Continuing with preceding example 125, upon the transfer of business, Tinny received a tax invoice in respect of goods transferred to them, such invoice issued to Minny dated 1 January 2018. The invoice was received by Tinny on 25 January 2018.

The question then is whether Tinny will be able to claim input tax on the tax invoice received.

Answer

 Applying the principle of going concern, as credit is already availed by Minny and balance is left unutilized in E- credit ledger. Thus Tinny would be able to claim input tax on the tax invoice as there is no limit of utilization of credit.