ITC of Rent a Cab @5% by Tour Opertor

[Bhawsagarsingh Munjal]

Dear Sir, Can a tour operator take ITC of rent a cab charged @5% ?

[Alkesh Jani]

Sir,

I am of the view that, you can avail ITC.

Thanks

[KASTURI SETHI]

Query is not complete. What is the constitution of the supplier of service and what is the constitution of receiver of service ? The scenario has changed with issuance of Notification No.29/19-CT(Rate) dated 31.12.19 and Board's circular No.130/49/2019 dated 31.12.19. The query has to be elaborated and rephrased.

AI Summary

Input Tax Credit eligibility for rent-a-cab services: may be available but depends on supplier and recipient constitution. Whether a tour operator may claim input tax credit on rent-a-cab services charged at a concessional rate is contested: one opinion affirms availability of credit, while another says entitlement depends on the legal constitution of supplier and recipient and on recent rate notifications and administrative circulars, requiring further factual detail to determine eligibility.