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Service tax on hiring of motor vehicle

18 February 2016

Sir, We r a limited Company and taking vehicle services from a private limited company. can we avail cenvat credit of input service tax.

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2 Replies

CA Prakash N (Head - Indirect Tax (GST & FTP)) (373 Points)
Replied 18 February 2016

As credit on renting of motor vehicle is specifically excluded from definition of input service, you can't avail credit on the same.

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Sachin Gupta (7 Points)
Replied 20 February 2016

If the vehicle company is claiming bills without abatement and the renting of motor vehicle is regarding some business purposes and not for the benefits of employees then its credit can be used. But if the vehicle company is claiming bills with abatement then its credit can't be availed.