input service on rent-a-cab

[Vijay kumar]

With reference to definition of input service under Rule 2(l)(B), please clarify whether 'rent-a-cab' is eligible input service for providing BAS service. It looks that as per the said rule, general insurance, rent-a-cab, motor vehicle repair and supply of tangible goods services (insofar as they relate to a motor vehicle) are eligible for credit only when the vehicle is registered in the assessees name. Does it mean that per se, credit on these services is not eligible for all other output services. Or, does it mean that this restriction is only for the services mentioned under Rule 2(2B) of CCR, 2004. As per the Board Circular issued in Jan, 2010 rent-a-cab service is essential for BPO operations (BAS service).

 

 

[sv bhasker]

Sir,

It appears rent-a-cab service is not  input service  for providing BAS as rightly analyzed by you. It is an input service for providing out door catering, GTA , rent a cab itself, cargohandling etc,where motor vehicle  are used invariably.

AI Summary

Input service classification: rent-a-cab not eligible as BAS input; limited to vehicle-centric services and registration-linked credit. The query asks if rent-a-cab is an input service for BAS under Rule 2(l)(B), given that certain motor-vehicle-related services attract credit only when the vehicle is registered in the assessee's name. The reply states rent-a-cab is not an input service for BAS but is an input service for services where motor vehicle use is inherent (outdoor catering, GTA, rent-a-cab, cargo handling) or otherwise subject to the registration/vehicle linkage condition.