DIWALI GIFTS

Amit ji waiting for your reply on this issue

Ask other professionals or post in expert section 

they guide u in better way than me 

 

ohh sure sir

@ 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

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

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

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.

ITC allowed for labour welfare a/c