Rent a cab service w.e.f 01.02.2019

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..... Rent a cab service w.e.f 01.02.2019
Query (Issue) Started By: - Mohideen A Dated:- 18-5-2020 Last Reply Date:- 20-5-2020 Goods and Services Tax - GST
Got 4 Replies
GST
Whether the input credit paid on taking cabs on hire for the transportation of its employees by companies is eligible for ITC in the Company's hands w.e.f. 01.02.2019? since the word rent a cab is removed from Block .....

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..... ed credit u/s 17(5) in the CGST amendment act 2018 ? Kindly clarify Reply By Surabhi Parihar: The Reply: With the introduction of new provisions w.e.f. 01/02/19, ITC on renting, leasing and hiring of motor vehicles have been disallowed only for vehicles having capacity upto 13 seats. (Section 17(5)(b)(i)) Thus, ITC can be availed on service of leasing, renting or hiring of motor vehicles under .....

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..... the following conditions w.e.f. 01/02/19: - The Vehicle has approved seating capacity of more than 13 persons (including driver). - The service of leasing, renting or hiring is used for furtherance of business as per Section 16(1) - The service provider furnishes invoice as per Section 31 and Rule 46 Therefore, ITC can be availed if it is obligatory for an employer to provide the same to its e .....

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..... mployees under any law for the time being in force and is used in furtherance of business. Reply By KASTURI SETHI: The Reply: Conditional ITC is allowed. Conditions well explained by an expert. Reply By YAGAY andSUN: The Reply: Motor Vehicle with More Than 13 Seaters is Eligible for ITC * Motor Vehicle with more than 13 persons including driving is eligible for ITC if it has approved seating .....

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..... capacity. * Physical verification of motor vehicle can be done to confirm the number of available seats * For such a vehicle, the verification of the approved seating capacity will be based on RC-smart card (registration certificate) Reply By Ganeshan Kalyani: The Reply: I agree with the experts. However, I am of the view that ITC may be denied.
Discussion Forum - Knowledge Sharing .....

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