can we take gst input of tour expenses made by pvt ltd company for their distributors?
Replies (4)
Quick Summary
This discussion explores whether a private limited company can claim Goods and Services Tax (GST) input tax credit on tour expenses incurred for their distributors. While generally GST credit on travelling expenses can be claimed, there are specific conditions. It's noted that if a tour operator charges GST at 5% without offering input tax credit (ITC), then ITC may not be available for the company. However, ITC might be claimable if one tour operator provides services to another in the same line of business.
When a business spends money on travelling expenses for the official work done by employees, apart from the cost, GST needs to be paid. The good news is GST Credit on Travelling Expenses can be claimed
I don't think that ITC is available. In term of Notification 1/2018 CT (r) , Tour Operator charge GST @ 5 % without ITC , hence ITC is available in this case . Yes if one tour operators gives services to other Tour Operator , then ITC is available (same line of business) .