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,
\nCompany 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 ?
\nIn 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 ?
\nReply By KASTURI SETHI:
\nThe Reply:
\nIn the present GST era, we are to examine the admissibility of ITC in view of the wordings, &qu<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n n employee shall not be treated as supply of goods or service or both, noITC can be availed. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n d as Employee welfare like quarters, Gym and entertainment facility etc provided to employee. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" 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 – GSTGot 14 RepliesGSTDear Experts, Company providing the uniform to their employees and for that company made contract with tailor and tailor is already registered under gst and … Continue reading “Can ITC avail on uniform to employees by the company”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-6986","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/6986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6986"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/6986\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nReply By KASTURI SETHI:
\nThe Reply:
\nAnyhow end result is same.
\nReply By KASTURI SETHI:
\nThe Reply:
\nCompany 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.
\nReply By subramanian vijayakumar:
\nThe Reply:
\nNo theycan't avail ITC as it is not in the course of furtherance of business
\nReply By KIRTIKUMAR PUROHIT:
\nThe Reply:
\nIn 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<\/p>\n
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\nReply By subramanian vijayakumar:
\nThe Reply:
\nNo itc is available these expenses are notified foe claiming ITC
\nReply By Monarch Bhatt:
\nThe Reply:
\nThe issue is with respect to the availment of ITC on the cloth and stitching charges paid for the uniform. My views are as follows:
\nSituation 1: Expenses are recovered from the employee.
\nReply: ITC not eligible.
\nSituation 2: Contracted employee or employee of the company expenses borne by the company.
\nReply: 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<\/p>\n
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