in the month of OCT-19 we sponsor one navaratri event, and party raise the invoice in forward charge base.
so, we paid the tac and take the ITC for the same. is it okay?
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Itc on sponsorship
Replies (3)
Quick Summary
If the 'party' is a corporate entity, then the 'party' need to pay the tax on RCM basis i.e. no need to raise invoice (under forward charge). But hereincase, if the 'party' is non-corporate entity and as you mentioned they raised invoice to you on forward charge, it is fine. With respect to eligibility, if it fulfills the 4 principal conditions of section 16 of CGST. In my opinion, you can avail the credit, provided all the conditions are fulfilled. For gst related updates and amendments follow @ gstgist on Instagram.
Yes as per Notification 13/2017 CT (r) , Recepeint of sponsorship services is liable to do RCM in case it is Body corporate or Partnership Firm .
So if above conditions is not fulfilled then ITC can be claimed, but make sure that the activities/transaction should be in course or furtherance of business. (Refer Section 16 of CGST Act)
So if above conditions is not fulfilled then ITC can be claimed, but make sure that the activities/transaction should be in course or furtherance of business. (Refer Section 16 of CGST Act)
recipient of sponsorship service is body corporate..
but we fulfill al the 4 conditions and activity is done for furtherance of business
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