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Car hire, can I avail itc
Whether Company can be availed ITC credit of GST on Car Hire charges which were used for the purpose of business
Replies (7)
Quick Summary
Yes they can avail
Can u send details wise sir
U can refer section 16 and section 17(5) of CGST Act,2017
Thank you sir
In term of Notification 22/2019 CT (R) :
The Renting of Motor vehicle is under RCM If :
Services provider is Individual & opted to pay tax on 5% with limited ITC .
Service Receptient is Body corporate.
Hence if above conditions fulfills you are required to do RCM & can avail ITC for RCM paid.
Note : If Services provider has charged 12% GST on his bill then Receptient (Co.) is not required to do RCM & can claim ITC for the same subject to conditions prescribed in Section 17(5) of CGST Act
The Renting of Motor vehicle is under RCM If :
Services provider is Individual & opted to pay tax on 5% with limited ITC .
Service Receptient is Body corporate.
Hence if above conditions fulfills you are required to do RCM & can avail ITC for RCM paid.
Note : If Services provider has charged 12% GST on his bill then Receptient (Co.) is not required to do RCM & can claim ITC for the same subject to conditions prescribed in Section 17(5) of CGST Act
The conditions mentioned are very pertinent here.
Yes ....& it's being provided in mention Notification , can also refer Circular 130/49/2019 GST for more clarity on same.
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