input tax credit on Rent a cab service

ITC / Input 4550 views 9 replies
is input tax credit available on Rent a cab service if vendor is charging gst on the bill and such service is for official purpose and that vendor is charging monthly bill to company?
Replies (9)
sir that service use for business is definitely you can Claim itc
No rent a cab services are block under 17(5) , hence cannot claim ITC
No ITC can not be claimed on Rent-a-cab, life insurance and health insurance, EXCEPT WHERE
 The Government has made it obligatory for an employer to
provide any of these services to its employees; or
 Inward supply of these services is used for making an outward

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.

Read our article on GST impact on cab services.

Is there any restriction to take ITC on the basis of tax rate 5% & 12% in same line business? Kindly clarify the tax rate also... Thank you....

 

Sir A person bougt a car on his OWN i.e; the car is owned by him & registered in OLA as a cab operator, 1) Can he claim ITC ? If he is registered 2) If such person is not registered , *Can OLA claim ITC on behalf of such cab operator* ? 3) Is OLA ,allowed to claim ITC directly into its account instead of cab operator ?
@ Mandanmohan. Yes GTA can avail ITC if it pays 12% Gst on forward charge.

If Rent a Cab Service provider charges GST @ 12% then is the service receiver eligible for ITC ??

No.............


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