Can ITC avail on uniform to employees by the company
Query (Issue) Started By: – RameshBabu Kari Dated:- 8-8-2017 Last Reply Date:- 10-5-2018 Goods and Services Tax – GST
Got 14 Replies
GST
Dear Experts,
Company providing the uniform to their employees and for that company made contract with tailor and tailor is already registered under gst and he billed the company with gst. In such case, can company avail the ITC ?
In this case, any differences will be there if uniform expenses are all borne by the company & does company eligible for the ITC ? or if such expenses recovered from the employee ?
Reply By KASTURI SETHI:
The Reply:
In the present GST era, we are to examine the admissibility of ITC in view of the wordings, &qu
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n employee shall not be treated as supply of goods or service or both, noITC can be availed.
Reply By KASTURI SETHI:
The Reply:
Anyhow end result is same.
Reply By KASTURI SETHI:
The Reply:
Company may not recover from the employees even then it is a hard nut to crack. I mean to prove in due course or furtherance of business. Is not possible.
Reply By subramanian vijayakumar:
The Reply:
No theycan't avail ITC as it is not in the course of furtherance of business
Reply By KIRTIKUMAR PUROHIT:
The Reply:
In my view; When to create identity of Business Organisation in the market if organisation provide uniform to his employee, in is a part of furtherance of business thus ITC may available but proper officer may be denied suc
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d as Employee welfare like quarters, Gym and entertainment facility etc provided to employee.
Reply By subramanian vijayakumar:
The Reply:
No itc is available these expenses are notified foe claiming ITC
Reply By Monarch Bhatt:
The Reply:
The issue is with respect to the availment of ITC on the cloth and stitching charges paid for the uniform. My views are as follows:
Situation 1: Expenses are recovered from the employee.
Reply: ITC not eligible.
Situation 2: Contracted employee or employee of the company expenses borne by the company.
Reply: The credit is admissible provided it has been used "in the course or furtherance of business". The phrase in the present case can be analysed considering any or all of the following
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =