DIWALI GIFTS

Page no : 2

saurabh jain (manager) (174 Points)
Replied 31 October 2017

Amit ji waiting for your reply on this issue

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they guide u in better way than me

saurabh jain (manager) (174 Points)
Replied 31 October 2017

ohh sure sir

raj kamal singh (Auditor) (528 Points)
Replied 01 November 2017

@ Mr. jain your presemptions are wrong.Condition for claiming credit is "futhurence of business".Business ,as per section 2(17)(b) of CGST is any activity/transaction in connection with or incidental/ancillary to trade.commerce.Whether Diwali gift entitles for furthurence of business.Absolutely "NO".Show diwali expenses under business promotion expenses n avail credit

saurabh jain (manager) (174 Points)
Replied 01 November 2017

ya its indirect expenses head under business promotion a/c ,if we take it under labour welfare a/c head then what will be scnerio

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saurabh jain (manager) (174 Points)
Replied 01 November 2017

ya its indirect expenses head under business promotion a/c ,if we take it under labour welfare a/c head then what will be scnerio

saurabh jain (manager) (174 Points)
Replied 02 November 2017

MR RAJKAMAL JI Saikrishnan S 01 November 2017

I have replied for sweets alone sir as mentioned in my early reply.

Section 17(5) (b) (i) specifically restricts the input tax credit with respect to food and beverages which means it is a blocked credit. Hence any sweets or beverages bought for workers/employees shall not be eligible for claiming input tax credit.

Your interpretation relating to other diwali gifts is right which means for that INPUT shall be taken.