Dakshinaa Murthhy Rayaprolu
(SR MANAGER - FINANCE & TAXATION)
(46 Points)
I would like to know whether GST credit is available or not available on Purchase of Diwali Gifts for Employees and business associates
Akash
( )
(375 Points)
Replied 03 October 2017
The general rule is that you are eligible to take credit of input tax charged on suppply of goods or services which are used in the course or furtherance of business. Purchase of diwali gifts for Employees and Business Associates is certainly not incurred in the course of the business of the company, therefore, in my opinion, you are not eligible to take ITC. However in case of business associates, if you are able to establish that this expense is used in the furtherance of your business, then you can claim ITC.
g mahesh Mundra
(Business and tax consultant)
(3296 Points)
Replied 03 October 2017
deepshikha
(student)
(49 Points)
Replied 25 August 2018
sir can you help me furtehr on this point. we have our head offfice in Delhi and no other branch but have sales person accross india. we have purchased diwali gifts for our asssociates who are not in Delhi. so we would be sending these gifts to our sales person located outside Delhi who will further dirstribute them
how can we transfer thegifts from Delhi to other sates
is it stock transfer?
is principle agent supply?
should we raise invoice?
deepshikha
(student)
(49 Points)
Replied 25 August 2018
what if final product of your business is excempt from GST, would ITC still be available
deepshikha
(student)
(49 Points)
Replied 25 August 2018
we are not distributing free samples. we re distributing diwali gifts
deepshikha
(student)
(49 Points)
Replied 25 August 2018
yes it is free cost
anyway i am not asking about ITC
i am asking how do we transfer the gifts out of delhi to a place wehere we dont have branch
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