ITC yes or no

sadanand (student) (38 Points)

24 August 2021

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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5 Replies

Amit (article) (148 Points)
Replied 24 August 2021

No company cannot take itc for hiring of drivers

sadanand (student) (38 Points)
Replied 24 August 2021

Can you please clarify why we can not take ?

pavan prabhas (79 Points)
Replied 24 August 2021

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).

sadanand (student) (38 Points)
Replied 24 August 2021

Thank you so much pavan

Chain to Help (35 Points)
Replied 24 August 2021

Correct Pavan

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).