can i claim input of gst while hiring cabs
2 Replies
RAHUL
(Student CA Final )
(377 Points)
Replied 09 June 2018
No, specifically blocked u/s 17(5) of the CGST Act.
Vinod Babu
(24196 Points)
Replied 09 June 2018
ITC is not available for rent-a-cab, health insurance and life insurance.
However, the following are exceptions, i.e., ITC is available for-
a. Any services which are made obligatory for an employer to provide its employee by the Indian Government under any current law in force
For example, assuming the government passes a rule for all employers to provide mandatory cab services to female staff in night shifts. ABC Ltd. hires a rent-a-cab to provide to transportation to its female staff on night shifts. Then ITC will be available to ABC Ltd. on the GST paid to the rent-a-cab service.
b. If the category is same for the inward supply and outward supply or it is a part of the mixed or composite supply
For example, ABC Travels lends out a car to XYZ Travels. Then XYZ Travels can claim ITC on the same.
However, the following are exceptions, i.e., ITC is available for-
a. Any services which are made obligatory for an employer to provide its employee by the Indian Government under any current law in force
For example, assuming the government passes a rule for all employers to provide mandatory cab services to female staff in night shifts. ABC Ltd. hires a rent-a-cab to provide to transportation to its female staff on night shifts. Then ITC will be available to ABC Ltd. on the GST paid to the rent-a-cab service.
b. If the category is same for the inward supply and outward supply or it is a part of the mixed or composite supply
For example, ABC Travels lends out a car to XYZ Travels. Then XYZ Travels can claim ITC on the same.
Recent Topics
- Https://viagr-atomic-booster.tilda.ws/
- DRC 01 along with SCN not received
- GSTR 7 amendment
- Change Reason For Challan in already paid chalan
- 🤖 The Future of Tax Filing: How Automation
- Andromeda Aagents income
- GST RFD 01
- Monthly Pension from EPFO exempt or taxable?
- NRI (Indian origin) director requiring employment
- Authorization operate bank accounts signing
Related Threads
CAclubindia
