ITC ON BUSINESS PROMOTION SCHEMES
Query (Issue) Started By: – PAWANKUMAR GARG Dated:- 25-11-2017 Last Reply Date:- 23-6-2018 Goods and Services Tax – GST
Got 8 Replies
GST
SIR
\nONE OF MY CLIENT DEALS IN TRADING OF TEA AND HE GIVES BUSINESS PROMOTION SCHEMES TO THE DEALERS \/ CUSTOMERS. MY QUESTION IS WHETHER HE IS ELIGIBLE FOR ITC ON SCHEME ITEMS SUCH AS LED, MOBILE SET AND OTHER ELECTRONICS ITEMS.
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nPromotion expense is done to increase the turnover of the business. Thus promotion expense incurred is in course and for furtherance of business. Hence , input tax credit is eligible. However, if any gift item is given to customer then input tax credit is not allowed.
\nReply By PAWANKUMAR GARG:<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n l Items if any given alongwith (not separate) with the product forms part of consideration received for the supply of product and accordingly ITC is available in those cases. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" ITC ON BUSINESS PROMOTION SCHEMES Query (Issue) Started By: – PAWANKUMAR GARG Dated:- 25-11-2017 Last Reply Date:- 23-6-2018 Goods and Services Tax – GSTGot 8 RepliesGSTSIR ONE OF MY CLIENT DEALS IN TRADING OF TEA AND HE GIVES BUSINESS PROMOTION SCHEMES TO THE DEALERS \/ CUSTOMERS. MY QUESTION IS WHETHER HE IS ELIGIBLE FOR ITC … Continue reading “ITC ON BUSINESS PROMOTION SCHEMES”<\/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-9169","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9169","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=9169"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9169\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nHence each case is to be dealt as per the facts.
\nReply By KASTURI SETHI:
\nThe Reply:
\nWe call the items free but virtually it is not free. It is an eye wash. The cost of free items are always included in the price of main product.
\nReply By CS SANJAY MALHOTRA:
\nThe Reply:
\nSh. Kasturi ji,
\nCompletely in agreement with you and hence the cost of promotional items i.e. Buy 1 Get 1 free signifies that the Sales price is for 2 products and not one. Can;t be termed as FOC supplies. Maximum it can be termed as Invoiced Qty, Discount Qty and Billed Qty for valuation.
\nReply<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n