Co Trading in Equity-ITC

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ACCOUNTS MANAGER
2206 Points Joined December 2012

Being a Private Limited Co., investment in equity trading, can get the ITC of it ?

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On 04 April 2025 at 12:10 Report
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Master in Accounts & high court Advocate
9581 Points Joined December 2011

As a Private Limited Company, you can claim Input Tax Credit (ITC) on goods and services used in the course or furtherance of business.

However, equity trading is considered a non-business activity, and therefore, ITC is not eligible on expenses related to equity trading.

Exceptions: There are some exceptions where ITC can be claimed on expenses related to equity trading:

- *Brokerage Services*: If the company is providing brokerage services or is engaged in trading as a regular business activity, ITC can be claimed on brokerage expenses. -

*Investment in Mutual Funds: If the company is investing in mutual funds as part of its business activity, ITC can be claimed on the investment management fees. Important Considerations: To claim ITC on expenses related to equity trading, ensure that: -

Business Purpose*: The equity trading activity is undertaken with a business purpose, such as providing brokerage services or investing in mutual funds. -

*Documentation*: Proper documentation, such as invoices and receipts, is maintained to support the claim. -

*GST Registration*: The company is registered under GST and has a valid GSTIN. 

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On 04 April 2025 at 15:24


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