ITC benefits in case of registration on voluntary basis
A person who takes voluntary registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration. Further, the registered person shall not be entitled to take the input tax credit in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply.
It infers that
- a) he is not entitled to take the credit in respect of the capital goods.
- b) he is not entitled to take the credit in respect of the any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply
Applicability of E invoice in case of GTA business in case of multiple registrations
As per Notification 13/2020- CT as amended, E-Invoicing is applicable to registered persons (except a few notified persons) whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds ten crore rupees in respect of the supply of goods or services or both to a registered person. (w.e.f. 01 Oct 2022)
It may be noted that GTA is one of the exceptions on which E-invoicing is not applicable.
Therefore, in the case of Bhagirath Ltd., E-invoicing is applicable for all B2B taxable supplies of Marketing consultancy only.
Applicability of E invoice in case of multiple registrations
As per Notification 13/2020- CT (as amended), E-Invoicing is applicable to registered persons whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds ten crore rupees in respect of the supply of goods or services or both to a registered person. (w.e.f. 01 Oct 2022)
Therefore, E-invoicing is applicable for all B2B taxable supplies of all such registrations of Ranchor Pvt. Ltd.
ITC on purchase of Treadmill, Rowing machine etc for fitness of the employees
Yes, it can avail the ITC provided the eligibility conditions are satisfied. It is to be noted that ITC can not be availed in respect of membership of a club, health, and fitness centre.
ITC on Travel benefits to whole time director
The input tax credit shall not be available in respect of the expenditure of travel benefits extended to employees on vacation such as leave or home travel concession.
Common credit reversal for registered person operating hotel and restaurant business
The ITC of input and input services is required to be reversed in the proportion of the aggregate value of exempt supplies during the tax period (Say, E) and total turnover in the State of the registered person during the tax period (Say, F).
Where the registered person does not have any turnover during the said tax period or the aforesaid information is not available, the value of 'E/F' shall be calculated by taking values of 'E' and 'F' of the last tax period for which the details of such turnover are available, previous to the month during which the said value of 'E/F' is to be calculated.
Merely by saying that there was no turnover in the particular month, the registered person can not take the clue of non-reversal of common credit. Further, the reversal amount is subject to yearly computation as well.