Expense list in which Gst applicable.
This query is : Resolved
03 September 2017
Sir,I am working Pvt Ltd concern ,I want to in which expense GST will be charge? I wait from you positive reply. Thanks SD
07 September 2017
Expense list under GST https://www.caclubindia.com/share_files/details.asp?mod_id=74125
24 July 2024
Certainly! In a Private Limited company, GST (Goods and Services Tax) is applicable on various expenses incurred for business purposes. Here is a list of common expenses where GST is applicable:
1. **Purchase of Goods**:
- Any goods purchased for resale or for use in the course of business attract GST. GST is charged by suppliers on these purchases.
2. **Purchase of Services**:
- Services procured for business purposes, such as professional fees, legal services, consultancy, advertising, etc., are subject to GST.
3. **Rent**:
- Rent paid for commercial properties, office spaces, warehouses, etc., is subject to GST if the landlord is registered under GST.
4. **Utilities**:
- Electricity, water, and gas consumed for business purposes are generally subject to GST.
5. **Travel and Accommodation**:
- Expenses related to travel (like air tickets, train tickets) and accommodation (hotel stays) attract GST.
6. **Telecommunication Services**:
- Expenses on telephone, internet, and mobile services for business use are subject to GST.
7. **Repairs and Maintenance**:
- GST is applicable on repair and maintenance services for machinery, equipment, vehicles, etc.
8. **Advertising and Marketing**:
- Costs related to advertising, marketing, and promotional activities, including agency fees and media costs, are subject to GST.
9. **Professional Fees**:
- Fees paid to professionals such as accountants, lawyers, consultants, etc., are subject to GST.
10. **Insurance Premiums**:
- Insurance services including health insurance, property insurance, etc., attract GST.
### Important Considerations:
- **Input Tax Credit (ITC)**: You can claim Input Tax Credit for GST paid on these expenses against the GST you collect on your sales or output tax liability.
- **Registration**: If your company's aggregate turnover exceeds the prescribed threshold (currently ₹40 lakhs for most states in India), you must register under GST and comply with GST filing requirements.
### Conclusion:
These are some common expenses where GST is applicable in a Private Limited company. It's crucial to maintain proper documentation of GST invoices and ensure compliance with GST laws to avail Input Tax Credit and avoid penalties. For specific advice tailored to your business, it's recommended to consult with a GST advisor or accountant familiar with your industry and business operations.
1. **Purchase of Goods**:
- Any goods purchased for resale or for use in the course of business attract GST. GST is charged by suppliers on these purchases.
2. **Purchase of Services**:
- Services procured for business purposes, such as professional fees, legal services, consultancy, advertising, etc., are subject to GST.
3. **Rent**:
- Rent paid for commercial properties, office spaces, warehouses, etc., is subject to GST if the landlord is registered under GST.
4. **Utilities**:
- Electricity, water, and gas consumed for business purposes are generally subject to GST.
5. **Travel and Accommodation**:
- Expenses related to travel (like air tickets, train tickets) and accommodation (hotel stays) attract GST.
6. **Telecommunication Services**:
- Expenses on telephone, internet, and mobile services for business use are subject to GST.
7. **Repairs and Maintenance**:
- GST is applicable on repair and maintenance services for machinery, equipment, vehicles, etc.
8. **Advertising and Marketing**:
- Costs related to advertising, marketing, and promotional activities, including agency fees and media costs, are subject to GST.
9. **Professional Fees**:
- Fees paid to professionals such as accountants, lawyers, consultants, etc., are subject to GST.
10. **Insurance Premiums**:
- Insurance services including health insurance, property insurance, etc., attract GST.
### Important Considerations:
- **Input Tax Credit (ITC)**: You can claim Input Tax Credit for GST paid on these expenses against the GST you collect on your sales or output tax liability.
- **Registration**: If your company's aggregate turnover exceeds the prescribed threshold (currently ₹40 lakhs for most states in India), you must register under GST and comply with GST filing requirements.
### Conclusion:
These are some common expenses where GST is applicable in a Private Limited company. It's crucial to maintain proper documentation of GST invoices and ensure compliance with GST laws to avail Input Tax Credit and avoid penalties. For specific advice tailored to your business, it's recommended to consult with a GST advisor or accountant familiar with your industry and business operations.
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