ITC on business promotion event

[Soham Patil]

Had a doubt regarding availing ITC in the following cases. Would really appreciate if someone could guide me through.

1) I have hired a event management company to organize an event for business promotion where my clients and employees will be the attendees. Food will also be provided in the event to the attendees. The event management company charged me a lumpsum amount in the invoice for organizing the event ( no bifurcation) . Can I claim the ITC on the same?

 

2) What would be the scenario if the invoice showed separately the amount charged for banquet, food , decoration,etc.

Would I be eligible for claiming the ITC?

 

3) In both the cases above, if I avail the services through a hotel (not through an event management company) what will be the scenario.

Will I be eligible to claim ITC?

AI Summary

Eligibility for ITC on Business Event Expenses: Consider Composite Supply and HSN Code; Restrictions on Food & Beverage Credit A participant inquired about the eligibility to claim Input Tax Credit (ITC) for expenses incurred on a business promotion event organized by an event management company. The participant asked whether ITC could be claimed when the invoice was a lump sum or itemized for banquet, food, and decoration. Responses indicated that ITC could be claimed for a composite supply of event management services, but credit for food and beverages might be blocked under certain tax restrictions. The importance of the Harmonized System of Nomenclature (HSN) code on invoices was highlighted for determining ITC eligibility.