Input tax credit
This query is : Resolved
11 August 2017
Sir,
Ours is a purchase and sale company. Along with this purchase and sale work, We are also implementing some Govt. Schemes like conduction of exhibitions, setting infrastructures under the Govt. schemes using the fund received from the Govt. as Grant for the same.
The expenses pertaining to the above Govt. schemes are accounted separately and would not reflect in the books of accounts of our organisation pertaining to the purchase & sale.. Both are audited separately and reported separately.
In the above scenario, Can we claim input tax credit for the taxes paid on the above Govt. scheme expenses to set off of GST collected on our regular sale of our products.
Ours is a purchase and sale company. Along with this purchase and sale work, We are also implementing some Govt. Schemes like conduction of exhibitions, setting infrastructures under the Govt. schemes using the fund received from the Govt. as Grant for the same.
The expenses pertaining to the above Govt. schemes are accounted separately and would not reflect in the books of accounts of our organisation pertaining to the purchase & sale.. Both are audited separately and reported separately.
In the above scenario, Can we claim input tax credit for the taxes paid on the above Govt. scheme expenses to set off of GST collected on our regular sale of our products.
11 August 2017
Input Tax Credit on expenses can be claimed only if used for furtherance of business. In the your case if you are making expenses for the Govt Grant purpose you cannot claim Input Tax Credit on the same for your business.
VK
VK
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