whether house keeping material purchase can be eligible for availing input tax credit since it is coming in the purview of employee benefit/staff welfare?
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Quick Summary
Housekeeping material purchased for office or business premises is generally eligible for ITC if used in the course or furtherance of business and supported by a valid tax invoice. It is usually treated as business expense, not staff welfare, unless specifically for employee benefits.
Again it should have a valid tax invoice bill from a registered dealer.The dealer must file returns not under a composite dealer. There are other conditions effective.
House keeping material purchase is not employee benifit/ staff walfare, it's business expenses relating to business,used and to be used for furtherance of business. So, ITC for same is allowed subject to sec.16 i.e availability of valid Tax invoice, filing return ect.
As per the provisions of section 16(1) only condition for availing the input tax credit is that input/input service/capital goods should be used or intended yo be used in the course or furtherance of business. If at the later stage such intention is not fulfilled the ITC claimed shall have to be reversed along with the interest payable as per the the provision of section 50.
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