Rent a cab service

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This query is : Resolved

DHEERAJ KUMAR (Querist)

08 January 2019 Sir
We are a Public Limited Company. We have hired a cab provider to provide cab services to our marketing staff .

Now if they charge GST then whether we can claim ITC. pl quote exact clause for that

Regards

Dheeraj Kumar

CMA Bhavya

CMA Bhavya (Expert)

08 January 2019 Dear Sir,
Rent a Cab service is directly an blocked Credit as per Sec. 17(5)(iii)
but wherein if you are falling in below business & services you can avail such credit

(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following,
namely:—
(a) motor vehicles and other conveyances except when they are used––
(i) for making the following taxable supplies, namely:—
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles
or conveyances;
(ii) for transportation of goods;

regards,
Bhavya.P

DHEERAJ KUMAR

DHEERAJ KUMAR (Querist)

08 January 2019 We are making first time recharge payment of Rs. 15000 pl confirm tds liability also

Regards

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