Input tax credit blocked list under sec 17

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This query is : Resolved

Uday Kiran (Querist)

05 October 2017 Sir... I have a doubt regarding input tax blocked on gift items. Suppose now a company is purchasing some jewels or clothes for giving that one as a gift. Now can the company claim input on that purchases ?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

05 October 2017 This is for Service Receiver........

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

05 October 2017 No he cant claim ITC on such goods. However gift is given for business purpose & not covered in exception u/s 17(5) then you can claim ITC.

Uday Kiran

Uday Kiran (Querist)

05 October 2017 Mam... can you give me some example to distinguish of gifts which can avail itc and who can't avail itc ?

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

05 October 2017 Gifts purchased for gifting to employee on occasion like b'day anniversary not allowed... If gift is given as sample for advertisement purpose to promote business then allowed.

Uday Kiran

Uday Kiran (Querist)

06 October 2017 So.. If a hospital enterprise purchases gifts like sarees or mobiles to outsiders , in such a case can that hospital avail ITC?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

06 October 2017 No then it cant.

Message likes : 1 times

Uday Kiran

Uday Kiran (Querist)

06 October 2017 Thank you mam... for your help.. Its very useful ...

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