Itc on mba course studied by partner for running family managed business

ITC / Input 359 views 2 replies

Saqif OM

Manager(F&A)

319 Points Joined October 2014

Good noon to All,

A,B & C are partners of a firm named ABC which is a family managed business.

A - Father

B - Mother

C - Son

C who was not active earlier, has completed his studies and intends to take part actively in the business from 2021 on wards.

In relation to the same , he has joined an MBA course with specialization in FMB(Family Managed Business) It was 1.5 year professional course solely designed to support the Family Managed Business Entrepreneurs.

My question is whether the firm ABC can avail the ITC paid on course fees for the partner?

Course fees is around 15 lakhs (incl GST). Please have your views.

Replies (2)

Padmanathan Kv

2127 Points Joined October 2017

It is a debatable issue. My view it will not be available u/s 17(5) blocked credit as it is for personal consumption of Mr.C. If it can be established that it is in furtherance of business also then there will be following issue. 1) Invoice will not be in the name of firm but in the name of Mr.C. 2) one of the condition u/s 16 is goods or service must be actually received. Here service is received by Mr.C in his capacity and not by the firm

I am also open to other views