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Vat -input tax credit

SACHIN KHETAWAT (Student) (349 Points)

27 December 2016

CAN ITC ON VAT LEVIVED ON BANNERS/ ADVERTISEMENT CLAIMED?

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Anirban Dutta (Finance Manager) (125 Points)
Replied 27 December 2016

ur question is not so cleared ......... i will discuss here some basic fanda on ITC.... (u read that carefully and judge with ur query............

1) A trader (dealer) will be entitled for ITC on prchase of goods which he re-sale

2)Amanufacturer will be entitled for ITC if he purchase the ggods for manufacturing (but not the manufacturing of exempt goods)

3) ITC is not available if the goods has given as gift or free of cost. here in case of u if that banner or hordings is used in advertisement business i.e an advertising agency will issue the tax invoice for sale of a banner to any organisation for their advertisement purpose then that agency will avail the ITC.