Input tax credit on rent a motor vehicle

2618 views 7 replies

EXPERTS,

                           GENERALLY   WE CAN NOT TAKE INPUT TAX CREDIT ON RENT A CAB. BUT SIR CAN WE TAKE ITC ON RENTING A MOTOR VEHICLE . I AM ASKING FOR THAT BECAUSE ITC BLOCK FOR RENT A  CAB . NOT FOR RENTING A MOTOR VEHICLE. SO PLEASE REPLY. 

Replies (7)

Please refer section 17(5)(a) of CGST Act, the credit would not be available 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,

 

Rajeev Bhargav

rajeev @ rbhargav.com

Originally posted by : Rajeev Bhargav
Please refer section 17(5)(a) of CGST Act, the credit would not be available 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,

 

Rajeev Bhargav

rajeev @ rbhargav.com

Sir,

    Thanks for reply but sir in above where it is mention that for renting a motor vehicle ????

         

@ Mr. Rajiv.,

(BUT SIR CAN WE TAKE ITC ON RENTING A MOTOR VEHICLE)
What kind of vehicle and Services you take?
sir we hired non ac bus for our employees for carry home to factory vice versa. sir bus came not under rent a cab provision and also itc not available for rent a cab in 17(5). so I ask that can we take itc on it renting a motor vehicle ie bus
Yes...

You can avail the ITC benefits for above said query...


(If you/we will be asking with details then You / we can get exact solution or reply from our Great CCI experts. But, Your 1st query is just common)

GOOD LUCK...

I PURCHASE MOTOR VEHICLE AND GIVE ON HIRE PURCHASE CAN I CLAIM GST CREDIT ON PURCHASE OF MOTER VEHICLE

We provide rent a cab service & charge GST @ 5% on invoices raised to client. We have purchased vehicles for providing rent a cab services. Can we claim ITC on vehicles ??


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