TMI BlogPartial recovery of Mobile phone from employee-GST InputX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear sirs, As per policy of one of our clients, they provide mobile phone to employees as per their pay scale. For example, Scale A employees are allowed phones upto ₹ 10,000/-. If employee int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ends to purchase more expensive mobile, say for ₹ 15000, then balance of 5,000/- is recovered from him. Now in effect, mobile is capitalised by 10,000/- in books but GST ITC is taken on entire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoice value of 15000. Whether this is correct or instead recovery of 5000/- should be treated as sale and corresponding ITC reversed? - Reply By Rajagopalan Ranganathan - The Reply = Sir, Since y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ou are recovering ₹ 5000/- from your employee for all practical purpose the consideration in excess of 10000/- is paid by the employee. Therefore ITC of gst paid on ₹ 5000 belongs to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... employee. Therefore you have to reverse the ITC of gst paid on 5000/-. The moot question is whether you recover ₹ 5000/- along with gst paid on such amount or not. - Reply By Ganeshan Kalyan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i - The Reply = Sir, if the asset is capitalised with GST then ITC cannot be taken. - Partial recovery of Mobile phone from employee-GST Input - Query Started By: - ROHIT GOEL Dated:- 10-11-2020 Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods and Services Tax - GST - Got 2 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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