Input tax credit
This query is : Resolved
11 August 2017
Sir,
Ours is a purchase and sale company. Along with this purchase and sale work, We are also implementing some Govt. Schemes like conduction of exhibitions, setting infrastructures under the Govt. schemes using the fund received from the Govt. as Grant for the same.
The expenses pertaining to the above Govt. schemes are accounted separately and would not reflect in the books of accounts of our organisation pertaining to the purchase & sale.. Both are audited separately and reported separately.
In the above scenario, Can we claim input tax credit for the taxes paid on the above Govt. scheme expenses to set off of GST collected on our regular sale of our products.
Ours is a purchase and sale company. Along with this purchase and sale work, We are also implementing some Govt. Schemes like conduction of exhibitions, setting infrastructures under the Govt. schemes using the fund received from the Govt. as Grant for the same.
The expenses pertaining to the above Govt. schemes are accounted separately and would not reflect in the books of accounts of our organisation pertaining to the purchase & sale.. Both are audited separately and reported separately.
In the above scenario, Can we claim input tax credit for the taxes paid on the above Govt. scheme expenses to set off of GST collected on our regular sale of our products.
11 August 2017
Input Tax Credit on expenses can be claimed only if used for furtherance of business. In the your case if you are making expenses for the Govt Grant purpose you cannot claim Input Tax Credit on the same for your business.
VK
VK
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Share accounting-->fifo - capital gain - period as per fifo?
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR validation error - Balance sheet is not filled
- Registration as Authorised Representative of minor
- Article ship defecit
- Bank Accounts in Balance Sheet for ITR 3
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
