Madam/Sir,
We are private limited company, we had taken a rent a cab service from registered cab service provider with tax charged 12% , Cgst 6% and Sgst 6%.
Kindly advise regarding input credit on this case.
David (B.Com) (76 Points)
29 November 2021
prasad Nilugal
( GST Practitioner & Accounts )
(14167 Points)
Replied 29 November 2021
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4515 Points)
Replied 29 November 2021
If motor vehicle which is being rented is 12 or more seater then credit is eligible. If not credit is not eligible.
Also, to reduce tax costs may look at comparing quotes from other rent a cab providers who charge 5% GST instead of 12%.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
