Itc on phone
SUMIT BADYAL (709 Points)
19 April 2021
hi, we purchased a phone for the director, can we take an input tax credit or not.
10 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 19 April 2021
No, you cannot claim ITC in this case as it is used for personal use
CA Puja Sharma
(Chartered Accountant)
(5010 Points)
Replied 19 April 2021
YEs you can take ITC provided the bill is in the name of the Company, Accounted for in company's books, the bill contains the valid GSTIN
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 19 April 2021
But if it is used for personal use then ITC cannot be claimed
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 19 April 2021
Transactions which are personal in nature cannot be accounted as expenses of the company and hence no ITC can be availed in respect of the same. Debiting the same to the account of the director would be appropriate I think.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 19 April 2021
No you cannot claim ITC on such expenses
SUMIT BADYAL
(709 Points)
Replied 19 April 2021
Ok understood, one more thing that it's come under indirect expense or assets
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 19 April 2021
Debit balance under director's account appears under Current Assets.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 19 April 2021
It will be comes under Directors account
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