Company deals in software activity, if company hire 10 drivers from ABC Travels PVT LTD in this case can we avail ITC or not on invoiced raised by ABC or not
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Quick Summary
This discussion clarifies whether Input Tax Credit (ITC) can be claimed when hiring drivers and vehicles from a third-party agency like ABC Travels. Generally, ITC is not available if both the drivers and cars are hired, as per Section 17(5) of the GST Act. However, if the company owns the cars and only hires drivers, ITC might be claimable.
If cars are owned by the company, then itc can be claimed. But if the drivers along with cars are hired from abc travels pvt ltd then in such case itc will be ineligible u/s 17(5).
If cars are owned by the company, then itc can be claimed. But if the drivers along with cars are hired from abc travels pvt ltd then in such case itc will be ineligible u/s 17(5).