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).

 

 

AI Summary

Rent-a-Cab Services Not Eligible as Input for Business Auxiliary Services per Rule 2(l)(B) of CENVAT Credit Rules, 2004. A query was raised regarding whether 'rent-a-cab' services qualify as an eligible input service for providing Business Auxiliary Services (BAS) under Rule 2(l)(B) of the CENVAT Credit Rules, 2004. The question highlighted that credit on services like rent-a-cab is only available when the vehicle is registered in the assessee's name. A response clarified that rent-a-cab services are not considered input services for BAS but are eligible for services where motor vehicles are essential, such as outdoor catering, goods transport agency (GTA), and cargo handling.