Can I claim input tax for my office TNB and water bill which are under owner’s name?
Nope but under certain condition, YES.
As the GST regulation stated a registered person can only claim input tax credit incurred by him if he holds tax invoice in his name. So basically, you are not allowed to claim it.
However, Customs make a decision on 27/07/2015 that, a GST registered person (tenant) is allowed to claim input tax credit using electricity and water invoices/bills which in the name of the property owner until 31/3/2016 subject to the following conditions –
- The property owner is not a GST registered person;
- There must be a tenancy agreement signed by the property owner and the tenant;
- There must be a clause in the tenancy agreement or a written declaration signed by both the tenant and property owner in a separate document stating that “the input tax on the electricity and water invoices/bills can only be claimed by the tenant. However if the property owner becomes GST registered person, the tenant is not allowed to claim the input tax using such invoices/bills. ”
- The tenant must keep records of the input tax claimed for the electricity and water invoices/bills under the name of the landlord; and
- The tenant shall stop claiming input tax credit using electricity and water invoices/bills under the name of the property owner once the property owner becomes a GST registered person.
In this case the normal GST rules apply where the landlord will have to issue a tax invoice and charge GST to the tenant. The tenant can use the tax invoice for claiming the input tax credit.
Another question. If we paid the TNB bill plus GST (bill under the landlord’s name) can we claim the gst paid by issuing an out of scope tax invoice to our landlord or any other type of invoice? Both our company & the landlord are GST registrant. Tq