If A bus travels provide the services for transportation of passengers. this travels charged gst @ 5% and this travel agency purchase a car (Capital Goods ) for business purpose and paid gst @ 28%. So A bus travel is eligible to claim input tax credit on purchase of Capital goods.
Please suggest me with proper Sections and guidelines..
Thanks
Input tax Credit to Travel Agency
Replies (5)
as per the rule for renting cab or we can also include buses and other passenger vechile . GST rate is 5 %without GST and 12% with GST. so as per rule they can not take credit , but this matter is debatable till now.
Tour Operator can charge 5% GST with condition that ITC shall not be available. If he avails ITC, Department may demand full 18% GST.
Yes... I agreed to Taxhelp....
If the agency charge 5% slab then can't avail the ITC benefits..
If the agency charge 12% slab then can avail the ITC benefit for the Purchases...
If the agency charge 5% slab then can't avail the ITC benefits..
If the agency charge 12% slab then can avail the ITC benefit for the Purchases...
Thanks to all for your suggestions..
i having my own traveling company to travel passenger
in that case can i take credit of repairing and maintence of the buses
like tyres and insurance of the buses
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