Good Evening to All,
If Director spend some amount for official purpose (like hotel bills etc) on behalf of the co and later on company will refund that amount. can we claim the input vat on Director's Expenses bills.
Awaiting for your kind replies....
The hotel prvoide services u/s thus hotel can not claim INPUT VAT CREDIT. VAT Credit is allowed only Purchase for the purpose of busniss not to personal.
Input tax means when a company buys goods or services from another supplier, for trading purpose
VAT is charged on the purchase price that is known as input tax.
Out put tax means when the company sells its own goods or services it charges its customers
VAT this is output tax.
so in your question director is a end user because
therefore director doesnt not have rights to claim input tax
if the commodities billed in hotel vat bill are used in or in relation to your output commodities, then u can claim the vat input credit, otherwise not.
Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
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