Eligibility of ITC

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my clients doing advertisement business where they engages models for shooting using car & cara-van taking for hiring.

As per the GST concern, can the ITC would be claimable or not on the said input services.

Thanks in Advance.

[Prudhvi Jakkula]

Rent a cab service is under sec 17(5). So credit cannot be taken on hiring of van.

[KASTURI SETHI]

ITC NOT ADMISSIBLE. Also See AAR in respect of Resham Associates on this issue.

AI Summary

Input tax credit ineligibility for hire of vehicles used in advertising productions, denying credit for cab and van services.
Credits for hiring passenger vehicles such as cabs, vans or cara-vans used to transport models for advertising shoots are not claimable; expert replies treat hired-vehicle services as falling within the statutory prohibition on certain input credits, citing an AAR (Resham Associates) to support that ITC is inadmissible for those services.