TaxTMI 
TaxTMI 
Partial recovery of Mobile phone from employee-GST Input
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....artial recovery of Mobile phone from employee-GST Input<br> Query (Issue) Started By: - ROHIT GOEL Dated:- 10-11-2020 Last Reply Date:- 10-11-2020 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<....
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....br>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 ....
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....intends 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 enti....
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....re 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 yo....
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....u 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 em....
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....ployee. 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 Kalyani: The....
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.... Reply: Sir, if the asset is capitalised with GST then ITC cannot be taken.<br> Discussion Forum - Knowledge Sharing ....