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ITC on Mess provisions

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Sreeram Kanchanam

59 Points Posted on 21 April 2021

Dear sir/Madam,

we are doing works contracts works of Government (state/central).
To executive works contracts we need man power. For our Employees we are providing food and accommodation.
can we claim ITC on mess provisions purchases.

please suggest in this regard

regards
Sreeramulu Kanchanam
9449871987

Replies (3)

Quick Summary

This discussion explores the eligibility of claiming Input Tax Credit (ITC) on mess provisions when providing food and accommodation to employees for government works contracts. While generally not allowed, ITC may be claimable if the provision of a canteen is legally mandated, such as under the Factories Act. A specific ruling from Kerala is mentioned as a point of reference.

CA ABHAY GUPTA

Practice

1639 Points Posted on 21 April 2021

If the canteen is mandated as per law ( like factories act), the amended provision allows to avail the Input credit.
Further invite your attention on the Advance ruling passed at State of Kerala in the case of caltech polymers pvt Ltd

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 21 April 2021

No you cannot claim ITC on mess provisions

Sreeram Kanchanam

59 Points Posted on 22 April 2021

We are providing Food to our Employees with company cost.So can we claim ITC on purchase of provisions.

suggest us in this regard

regards
Sreeramulu Kanchanam