Itc on canteen equipment

Originally posted by : Manish K Ojha
	A company provides free food facility to its employees. Company buys cantene equipments which is posted as capital goods in books of account. whether ITC on cantene equipments will be available?   Manish Ojha 8275058999.

Not Available  As per Sec. 17.

Apportionment of credit and blocked credit
(1) Where the goods or services or both are used by the registered person partly for thepurpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business.

Providing free food facility to employees is considered as business purpose. Further section 17(5) restricts food items not cantene equipments which are capitalized. 

Manish Ojha

Originally posted by : Manish K Ojha
	Providing free food facility to employees is considered as business purpose. Further section 17(5) restricts food items not cantene equipments which are capitalized.    Manish Ojha

Dear Manish 

Please quote section with  your Explanation.