{"id":59704,"date":"2024-04-16T01:41:57","date_gmt":"2024-04-16T01:41:57","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59704"},"modified":"2024-04-16T01:41:57","modified_gmt":"2024-04-16T01:41:57","slug":"any-input-tax-paid-on-purchase-of-goods-or-services-by-an-assessee-for-employees-is-eligible-for-itc","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/any-input-tax-paid-on-purchase-of-goods-or-services-by-an-assessee-for-employees-is-eligible-for-itc\/","title":{"rendered":"Any input tax paid on purchase of goods or services by an assessee for employees is eligible for ITC?"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97072052f42\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    No                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Yes                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    Yes, on the services notified which are obligatory for an employer to provide to its employees under any law for the time being in force                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Not applicable                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is C.<\/p>\n<p>Input tax credit (ITC) is a tax credit that is available to businesses on the purchase of goods and services that are used in the course of their business. ITC can be claimed on the purchase of goods and services that are used to manufacture, produce, or supply goods or services, or on the purchase of goods and services that are used for administrative or other purposes.<\/p>\n<p>The goods and services that are eligible for <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> ITC are specified <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> in the Central Goods and Services Tax (CGST) Act, 2017. The CGST Act provides that input tax credit is available on the purchase of goods or services by an assessee for employees, if the services are notified which are obligatory for an employer to provide to its employees under any law for the time being in force.<\/p>\n<p>The following are some of the services that are notified as obligatory for an employer to provide to its employees:<\/p>\n<ul>\n<li>Provident fund<\/li>\n<li>Employees&#8217; state insurance<\/li>\n<li>Gratuity<\/li>\n<li>Medical benefits<\/li>\n<li>Leave travel concession<\/li>\n<li>House rent allowance<\/li>\n<\/ul>\n<p>If an employer purchases goods or services for its employees, and the services are notified as obligatory for an employer to provide to its employees under any law for the time being in force, then the employer can claim ITC on the purchase of such goods or services.<\/p>\n<p>The following are some of the services that are not notified as obligatory for an employer to provide to its employees:<\/p>\n<ul>\n<li>Food and beverages<\/li>\n<li>Transport allowance<\/li>\n<li>Gift vouchers<\/li>\n<li>Entertainment allowance<\/li>\n<\/ul>\n<p>If an employer purchases goods or services for its employees, and the services are not notified as obligatory for an employer to provide to its employees under any law for the time being in force, then the employer cannot claim ITC on the purchase of such goods or services.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[969],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Any input tax paid on purchase of goods or services by an assessee for employees is eligible for ITC?<\/title>\n<meta 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