ITC ON OFFER FOR SALE OF SHARES

[SHARAD ANADA]

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 company. 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?

AI Summary

Company's ITC Eligibility on Public Share Sale Expenses Debated; Section 16(1) Supports ITC for Related Services Promoters of a limited company offered their shares for sale to the public, incurring expenses and availing Input Tax Credit (ITC) on these expenses. The question raised was whether the company is eligible for ITC, given that the offer for sale is a securities transaction, and securities are neither goods nor services. Several replies affirmed ITC eligibility, arguing that expenses related to services like underwriting and listing are indeed services and qualify for ITC under section 16(1) as they are in the course of business.