TaxTMI 
TaxTMI 
Could we get ITC on transportation charges paid for employee pickup and droop.
ITC on Transportation Charges
15 May 2018 
5 Replies 
1320 Views Asked by
Guest 
Input tax credit on employee transportation may be available when in course of business, subject to statutory exclusions.
ITC on employee pick-up and drop may be allowable if the transport service is provided in the course of business, but entitlement is ambiguous because of issues whether the service constitutes an inward supply to the employer, whether employees pay consideration, and the statutory exclusion for motor vehicles/conveyances under Section 17(5) unless a service is notified as obligatory for employers; the matter is disputable and may attract show-cause notices. (AI Summary)
ITC on employee pick-up and drop may be allowable if the transport service is provided in the course of business, but entitlement is ambiguous because of issues whether the service constitutes an inward supply to the employer, whether employees pay consideration, and the statutory exclusion for motor vehicles/conveyances under Section 17(5) unless a service is notified as obligatory for employers; the matter is disputable and may attract show-cause notices. (AI Summary)