ITCC REFUND Sample Clauses

The ITCC Refund clause establishes the obligation for one party to reimburse the other for any loss or shortfall in Input Tax Credit (ITC) that arises due to non-compliance or default by the supplier under applicable tax laws. In practice, this means if the supplier fails to pay the required taxes or does not file returns properly, resulting in the recipient being unable to claim or retain ITC, the supplier must compensate the recipient for the financial impact. This clause is essential for protecting the recipient from tax-related risks and ensuring that the intended tax benefits of a transaction are preserved.