Input tax credit on passenger transport service
This query is : Resolved
Dharam Vinesh Shethia
(Querist)
26 March 2018
Mr X is providing passenger transport services and Charge GST @ 5%
He bought bus for the same purpose and paid gst of 20 lacs on same.
Does he is eligible for taking credit of gst paid on bus purchased even though tax paid by him is at 5%
5% rate read as: Transport of passengers, by Air conditioned contract/stage carriage other than motorcab - 5%No ITC
and negative list of input credit reas as: Cases when ITC is not available under GST
(1) Motor vehicles & conveyances EXCEPT : If you are providing
transportation of passengers then ITC will be allowed on the vehicle
purchased.
He bought bus for the same purpose and paid gst of 20 lacs on same.
Does he is eligible for taking credit of gst paid on bus purchased even though tax paid by him is at 5%
5% rate read as: Transport of passengers, by Air conditioned contract/stage carriage other than motorcab - 5%No ITC
and negative list of input credit reas as: Cases when ITC is not available under GST
(1) Motor vehicles & conveyances EXCEPT : If you are providing
transportation of passengers then ITC will be allowed on the vehicle
purchased.
CA R SEETHARAMAN
(Expert)
26 March 2018
Not eligible for ITC on bus purchase as GST 5% charged on out put service. GST tariff for this service is 5% with no ITC.
ITC can be claimed if 12% GST is charged at par with transporters.
ITC can be claimed if 12% GST is charged at par with transporters.
Message likes :
1 times
Dharam Vinesh Shethia
(Querist)
28 March 2018
Thank You very much sir.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GSTR9 Annual Return
- Ito add credit side of bank
- Employee secondment
- Applicability of tax on invoice
- Form 144 TDS Return Validation error
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Gift to nri relatives resides in usa
- GST ITC as per notification 12/2023- central tax
- Rent agreement of House of deceased person
- Capital gain on commercial property and investment in residential property
- Import of Capital Machine
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
