Input Tax on Legal Fees

Can a company claim input tax on Legal Fees incurred for the purpose of court case against a default trade Debtor ?

The questions you should ask:
1) is the fee incurred in the course or for furtherance of business?
2) is the fee incurred attributable to making of taxable supply?

If both answers are positive, then the input tax is claimable.

If the legal fee is incurred to recover a debt from sale of residential property, it is not claimable because sale of residential property is an exempt supply.

Is default Trade Debtor, long overdue accounts for supplying of goods ( co. core business).

So, is recovering of bad debt consider as furtherance of business ?

Thanks for replying.

the supply( to the bad debts) was made before 1st April 2015, but the legal fees was billed to us in April 2015, with 6% GST.

Yes, claimable.

Tqvm