TaxTMI 
TaxTMI 
ITC ON OFFER FOR SALE OF SHARES
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....TC ON OFFER FOR SALE OF SHARES<br> Query (Issue) Started By: - SHARAD ANADA Dated:- 17-11-2023 Last Reply Date:- 26-11-2023 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Promoters of the limited compay offers their shares for sale to the public. After offer for sale by the promoters authorised and paid up share capital of the company remains the same. No new fund is introduced in the com....
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....pany. The company have incurred expenses for such offer for sale of promoters scurities and availed ITC on the said expenses.Whether the company is eligible for ITC? Reply By Ganeshan Kalyani: The Reply: Yes, ITC is eligible for taking credit. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: ITC is eligible in this case, Reply By Padmanathan Kollengode: The Reply: Dear querist, kindly provide....
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.... the nature of expenses incurred. Reply By SHARAD ANADA: The Reply: Natrue of expenses are Charged On listing of the shares , amount Charged On underwriting fees, Charged Or initia fees on signmg of the mandate etc. All such expenses are paid to consultant who charged GST on the said servies invoices. As per department offer for sale of share is securities transaction and securities are neither ....
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....goods nor services hence as per Sec. 16(1) ITC is not eligible. Pl guide Reply By Padmanathan Kollengode: The Reply: Though securities are neither goods nor service, the impugned services mentioned by you such as underwriting, listing of securities etc are not themselves 'securities' per se and are indeed services. Therefore, credit of input tax charged on supply of such services under s....
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....ection 16(1) since in it in the course or furtherance of business.<br> Discussion Forum - Knowledge Sharing ....