can a restaurant avail input tax credit on purchase
prashant Kumar Singh (student) (246 Points)
14 May 2019can a restaurant avail input tax credit on purchase
abhishek bardia
(partner)
(308 Points)
Replied 14 May 2019
prashant Kumar Singh
(student)
(246 Points)
Replied 14 May 2019
abhishek bardia
(partner)
(308 Points)
Replied 14 May 2019
Saurav Bhattacharya
(258 Points)
Replied 14 May 2019
Nandini H Gupta
(Chartered Accountant )
(369 Points)
Replied 14 May 2019
At present rate notification 11/2018 provides at entry 7(i), rate of 5% with no ITC condition for restaurant (less than 7500 tariff).
Further Entry (ix) provided for option of 18% with explanation to entry (ix) provides that"For the removal of doubt, for entry no (i)- shall attract central tax @ 2.5% without any input tax credit under item (i) above and shall not be levied at the rate as specified under this entry.
So, restaurant (other than in a premise whr tariff is more then 7500/unit/day) the rate of tax is only 5% and no ITC can be claimed.
There is no option to pay @ 18% with ITC been given.
Saurav Bhattacharya
(258 Points)
Replied 14 May 2019
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