B.S.Omkareshwar (CA-Final Student) (217 Points)
07 June 2018Hi,
So there is a company which avails catering services to provide daily breakfast, lunch, evening snacks and dinner to employees.
The company is avialing credit of GST paid to caterers. sec 17(5) of CGST act blocks availing such credit . ( Correct me if iam wrong )
My question is wether the such credit can be availed?
Regards
Omkar
CA Padmasri Manyam
(CA in Practice)
(1340 Points)
Replied 07 June 2018
if the Outdoor catering services are used for providing same category of service, credit can be taken.
B.S.Omkareshwar
(CA-Final Student)
(217 Points)
Replied 07 June 2018
the company iam speaking are in to Provding online advertisement space to advertisers ( Similar to Google ).
their business is not rendering catering services. So, they cannot avail right?
CA Padmasri Manyam
(CA in Practice)
(1340 Points)
Replied 07 June 2018
If they are recovering amount from their employees and paying tax at 18% on such supply of food. Then they can take credit. But the company may be not paying any output tax on supply of such food. Hence, ideally they will not be able to take credit.
(Company need not be fully enaged in supply of outdoor catering serivices)
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
