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Input tax credit

Direct Taxation

If any employer pays corporate membership fees of health club for it's managing director without any legal obligation to pay.. So can employer take input tax credit in this case.???

Riya Goel

CA Inter

★ 4K+

02-Oct-21 16:02

575

Answers (7)

yes

Sriram Somayajula

Admin

02-Oct-21 18:17

Sriram Somayajula Admin

yes

But since there is no legal obligation to pay Then why he is eligible to take?

Thread Starter

Riya Goel

CA Inter

★ 4K+

02-Oct-21 19:08

Thread Starter

Riya Goel

But since there is no legal obligation to pay Then why he is eligible to take?

No it is blocked credit u/s 17(5)

Himanshu Somani

CA Final

★ 97K+

02-Oct-21 19:18

Himanshu Somani

No it is blocked credit u/s 17(5)

So it means employer will not allowed be take Input tax credit

Thread Starter

Riya Goel

CA Inter

★ 4K+

02-Oct-21 19:24

Thread Starter

Riya Goel

So it means employer will not allowed be take Input tax credit

Himanshu Somani

CA Final

★ 97K+

02-Oct-21 19:27

Himanshu Somani

Ok Thanku

Thread Starter

Riya Goel

CA Inter

★ 4K+

02-Oct-21 19:30

Thread Starter

Riya Goel

Ok Thanku

I thought you meant as part of salary - if it is not part of salary then obviously no - I misread the question

Sriram Somayajula

Admin

02-Oct-21 21:41