Query on Availing ITC for Cab Services

[Ramanathan Seshan]

Dear Experts,

I would like to know whether Input Tax Credit (ITC) can be claimed on the following cab service expenses:

1. Cab used for attending a personal hearing with the tax officer.

2. Cab facility provided to employees who stay late after office hours for dropping them home.

Regards,

S Ram

AI Summary

Input Tax Credit on cab services blocked under Section 17(5)(b); only allowed when employer provision is legally mandatory.
ITC on cab services is blocked under Section 17(5)(b); cab use for a personal hearing is ineligible. Employee drop-home cab services are likewise ineligible unless the employer is legally required to provide such transport, in which case the mandatory nature could permit credit.