Nature of purchase

This query is : Resolved

M L SHARMA (Querist)
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11 May 2019 We have purchased taxable inward supply vide tax invoice but we can not avail ITC since the supplier (in routine practice) do not pass tax credit to buyer..e.g. Telephone, Mobile expenses, TDS Return uploading Fee etc. These are expenses against which IGST and/or CGST/SGST is charged but the supplier of service do not pass it to buyers.

Now how this taxable purchase should be booked with full amount (taxable value + IGST/CGST/SGST).

Is it INELIGIBLE PURCHASE or should be book as PURCHASES FROM URD? However supplier is not URD, what we should do in such cases?

Thanks in advance!

CA Anita Bhadra

CA Anita Bhadra (Expert)
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11 May 2019 These are neither ineligible purchases nor service providers are considered as URD

You need to provide your GSTN Number to these service providers . You can claim ITC as B2B Transaction

These are neither ineligible nor URD