Hi, I want to know if i can take ITC on renting if motor vehicle? Case : The motor vehicle provider is charging rent to the xyz company but is carrying employees of company as guided by company (Distance is decided). Here the motor vehicle provider is showing SAC code 9966, whether he is right?
But though the motor vehicle provider is showing SAC 9966 on the invoice, the company is proportionately recovering from its employees under SAC 9964, whether the company is right? Also whether under thecurrent situation the company can claim ITC? Because 17(5) says about rent a cab and its exceptions which is if the company is providing similar business it can avail ITC. Please suggest on the same.
Also please suggest if any of the above person is doing wrong.
CAclubindia
