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Tracking assets is a critical task of any company and most of the time consuming tasks of the whole word day but the positive point is barcodes, scanners, asset tracking software and other asset tracking software tools can streamline your work day more efficiently so Get the free fixed assets tracking software to keep an eye on your organization assets with Alignbooks.

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If you are looking for a online bookkeeping software for small and medium businesses so connect with Alignbooks and get the best bookkeeping services at very low cost.

https://alignbooks.wordpress.com/2018/02/20/how-adaptation-of-bookkeeping-software-enhance-your-business-processes/

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Get the best accounting services with Alignbooks which is one of the best cloud based accounting software for small businesses and provides you world class quality, easy integration, and accuracy at very low price.

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Alignbooks is the best cloud based accounting software  for small and medium business to fulfill your business needs and we are also easier to real-time access, easy installation and all financial transactions transparency etc.

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Alignbooks is the best accounting software for small and medium business as per your business needs. We also provide easy customised Finance ERP solutions for giant businesses and organisations.

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INELIGIBLE INPUT TAX CREDIT UNDER GST

Input Tax Credit (ITC) is an important factor in GST regime that has recently takes place in India. ITC ensures that ensure that GST is devoid of cascading effect and the tax should be levied in the next only on value addition provided by the next supplier. To claim input tax credit various conditions has been provided in the relevant section of the Act such as there must be proper tax invoice, the supply should pertain to business, payment of supplier dues within the prescribed time period and so on.

However, in the Act there are certain situation has been specifically enumerated where the ITC paid by the buyer would not at all claimable by the registered buyer against his/her output tax liability.  

The section 17(5) provides that in the following situations the input tax credit shall not be available in respect of the following:

(a) Motor vehicle and other conveyance except when they are used for making the

following taxable supplies, namely-

Ø Transportation of Goods, or

Ø Making the following taxable services:

I. Further supply of such vehicles/conveyances, or

II. Transportation of passengers, or

III. Training for driving/flying/navigating such vehicles/conveyances.

(b) Supply of goods and/or services such as –

food and beverages,

outdoor catering,

beauty treatment,

health services,

cosmetic and plastic surgery

would be allowed only if supply of goods or services of particular category is used for making an outward taxable supply of the particular category of goods or services or both or as an element of a taxable composite or mixed supply

(c) membership of a club, health and fitness centre and travel benefits to employees on vacation i.e. leave or home travel concession would never be allowed.

(d) rent-a-cab, life insurance, health insurance would be allowed only if it is notified by the

Government as obligatory for an employer to provide to its employees under any law for the time being in force;

or

such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply; and

(e) Works contract services when supplied for construction of immovable property, other

than plant and machinery, except where it is for further supply of works contract service;

Hence, credit of GST paid on works contract services will be allowed only if the output is also works contract services.

(f) Goods or services received by a taxable person for construction of an immovable

property on his own account, other than plant and machinery, even though it is used in

course or furtherance of business;

Here, “Construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property. Please note that ‘alterations’ and

‘repairs’ are also included in this definition.

And, Plant and machinery: means apparatus, equipment, machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes land, building or any other civil structures, telecommunication towers; and pipelines laid outside the factory premises.

(g) Goods or services or both on which the tax paid under composition scheme. That means where any amount has been paid on goods or services or both, in lieu of tax, under composition scheme, no credit on such amount would be allowed.

(h) goods or services or both received by a non-resident taxable person except on goods imported by him

(i) Goods or services or both used for personal consumption

(j) Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples

(k) Tax paid in terms of section 74 (on determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts, section 129 (on detention, seizure and release of goods and conveyances in transit) and section130 (on confiscation of goods and/or conveyances)

It is a difficult task to keep track that on which expenses and circumstances the input tax credit would not be eligible, however there are several GST enabled accounting software in the market that provides the facility to mark the expenses where the GST would not been available or such accounting software does also provide the facility to route such expenses through specific voucher which ensures that the ITC entry should not be passed as recoverable amount rather tax paid on such ineligible items should be booked as expenses/assets along with other cost.

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Alignbooks has helped businesses switch to a unified inventory management system which reduces dependency, increases manageability and brings complete transparency to how your warehouses are performing.

https://alignbooks.com/inventory-management-software

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AlignBooks is best gst accounting software for small and medium business which is always updated with gst related issues like returns, various invoicing formats etc and provides online supports.

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