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Punjab Sales Tax on Services Act, 2012 QUESTION #2558
Question 1
According to section 16A(3), where a service recipient fails to make payment through the prescribed banking channel, the time limit within which credit-based transactions must be transferred to avoid losing input tax credit is:
  • Ninety days from issuance of tax invoice
  • One hundred and twenty days from issuance of tax invoice
  • One hundred and eighty days from issuance of tax invoice✔️
  • Three hundred and sixty-five days from issuance of tax invoice
Correct Answer Explanation
Section 16A(3) states that payment in case of a transaction on credit must be transferred within one hundred and eighty days of issuance of the tax invoice, failing which the service recipient shall not be entitled to claim input tax credit, adjustment, deduction or refund.