Input tax credit in case of purchases made by hotels

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2014 PURCHASES LIKE STATIONARY, ELECTRICITY APPLIANCES,FUEL, ETC
WILL THE ABOVE PURCHASES BE ALLOWED INPUT TAX CREDIT IN CASE OF HOTEL BUSINESS
PLEASE REPLY FAST.
I AM FACING THE SAME PROBLEM IN MY AUDIT AND NO ONE IS HERE TO GUIDE ME

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 November 2014 yes if such are business exp then allowed to take credit.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2014 HOUSEKEEPING EXPENSE, BUILDING REPAIR & MAINTAINANCE, BOOKS&PERIODICALS "ITC" WILL BE ALLOWED OR NOT.IN CASE OF HOTEL

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 November 2014 all the exp incurred for running business are allowed including the above.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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19 November 2014 All these are indirect expenses purchases,hence,tax paid on them are not allowed as ITC.VAT paid on purchases of goods required for manufacturing/making the sold products only are allowed for ITC.It is for this reason most of the small hotels opt for composition,In a hotel business most of the inputs,like cereals,pulses,vegetables,fruits,mutton,fish,milk,sugar, etc are exempted,and therefore,ITC will be very low and output will be high....mjk

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MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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