TAPASH (Dy. Manager - F & A) (21 Points)
08 December 2016Situation - Company A gives an order to Company B for construction of immovable property. Company B engaged one sub-contractor (C) for such work. Sub-contractor raise invoice to Company B with GST and Company B also raise invoce to Company A with GST.
Understanding - Company A unable to take input credit because of clause 9(c) of Section 16 (Chapter V) of Draft GST Act.
Quiery - Whether Company B is entitled to take input credit?
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 09 December 2016
Model GST Law- superceded.
Revised Model Law sec 17(4)(c) applicable.
Co B can avail the credit. However A is not eligible.
In my view this should have been allowed considering the promise of seamless credit. Industry may have to represent in this reagrd.
CAclubindia
