Sir/Madam,
A Partnership Firm imports goods into India, affixes brand name and make a Sales to Pvt ltd company which has branches in different states. Firm and Pvt Ltd have common partners/directors. Brandname is registered in one of the directors. Marketing expenses, Advertisement, exhibition expenses are incurred by the Firm itself. Firm make sales only to Pvt company and its branches and not sell outside customers. Now the input tax is disallowed in firm stating the brand name is in personal name. and brand name is also used in Pvt ltd? Is the valid?
ITC Disallowed for Firm Using Director's Personal Brand Name; Validity Debated Due to Group Approval, No Contract. A partnership firm importing goods into India affixes a brand name registered to one of its directors and sells exclusively to a private limited company with shared partners/directors. The firm's input tax credit (ITC) is disallowed because the brand name is in a personal name. The discussion explores whether ITC disallowance is valid, considering the brand name's approval for use within the group, lack of consideration for its use, and absence of a formal contract. Opinions vary, with some suggesting that ITC should not be disallowed solely due to the brand name's personal registration. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
