The correct answer is: A. Actual Credit or 50% credit.
Banking companies and financial institutions have the option of claiming input tax credit (ITC) on the purchase of goods and services used for their own business purposes. They can either claim the full amount of ITC, or they can claim a 50% credit. The option they choose will depend on their specific circumstances.
If a banking company or financial institution claims the full amount of ITC, they will be able to offset the amount of tax they owe on their taxable supplies. This can help to reduce their tax liability. However, they will also need to keep track of the amount of ITC they claim, and they may be subject to audits by the tax authorities.
If a banking company or financial institution claims a 50% credit, they will not be able to offset the full amount of tax they owe on their taxable supplies. However, they will not need to keep track of the amount of ITC they claim, and they will not be subject to audits by the tax authorities.
The option that is best for a particular banking company or financial institution will depend on their specific circumstances. They should consider the amount of tax they owe, the amount of ITC they can claim, and the potential for audits when making their decision.