3A Accounting System

Thursday, February 5, 2015

What is Blocked Input Tax?

Blocked Input Tax is non-claimable input tax.

Quoted from General Guide, section 192, the following are Input Tax not allowed to claimed:-

192. Input tax incurred by a taxable person in respect of the following supplies shall
be excluded from any credit under GST:-
(a) the supply to or importation by him of a passenger motor car;
(b) the hiring of a passenger motor car;
(c) club subscription fee;
(d) medical and personal accident insurance premium;
(e) medical expenses;
(f) family benefits; and
(g) entertainment expenses to a person other than employees or existing customers except entertainment expenses incurred by a person who is in the business of providing entertainment.

Takeaway:-
  • Assets purchased for personal use in not claimable

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