The company is not eligible to take input tax credit on GST charged by vendor for canteen services availed by it for its employees.
Input tax credit— The applicant is a company engaged in the business of manufacturing and supply of Auto Parts.
Questions on which Advance Ruling is being Sought—
Applicant receives Inward Supply of Canteen Services for employees working in Manufacturing Unit and against the same distribute coupons to employees on subsidized price to avail canteen services. Question arise as under:
a) Whether company is eligible to take Input Tax Credit on GST charged by vendor for Canteen Service availed by it for its employees?
b) Whether distribution of Coupons among employees attracts GST Liability? If Yes, then under which SAC tax shall be deducted?
c) Is it correct to determine the Fair market value of coupons based on the rate charged to employees?
Company purchases edible items like Sweets, Dry fruits and gifts like electronics, gold & silver coins/articles etc. for the purpose of Business Promotion. Whether Company is eligible to take Input Tax Credit on such business promotion expenses or not?
(a) The company is not eligible to take input tax credit on GST charged by vendor for canteen services availed by it for its employees.
(b) The distribution of coupons among employees will attract tax liability.
(c) The coupon value shall form part of the total taxable value of the caterer i.e. service provider.
The company is not eligible to take input tax credit on business promotion expenses.