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rent a cab credit
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....ent a cab credit<br> Query (Issue) Started By: - nirali pandya Dated:- 17-1-2018 Last Reply Date:- 8-2-2018 Goods and Services Tax - GST<br>Got 8 Replies<br>GST<br>I am an employer and hiring cabs for transportation of employees. Am i eligible to take credit of such GST paid. Reply By CS SANJAY MALHOTRA: The Reply: ITC is not admissible as rent a Cab service is specified in negative list. Please....
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.... refer section 17(5) of CGST act. Reply By JAIPRAKASH RUIA: The Reply: But is there any difference between hiring and renting. Reply By nirali pandya: The Reply: Sir, I am hiring services of cab as i am availing services whereas if i am giving my cabs on rent it will be renting of services of cabs Its just a difference of giving (in case of renting) and availing (in case of Hiring) . Reply B....
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....y Ganeshan Kalyani: The Reply: Input tax credit is not eligible on rent a car service. Reply By JAIPRAKASH RUIA: The Reply: Restricted credit provisional are as under : (iii) rent-a-cab, life insurance and health insurance except where -- (A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or (B....
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....) such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply; and First it is not restricted if fall under provisio (A) & (B). Second, the credit is restricted only for Rent a Cab, and Cab is not defined in GST acts ....
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....but defined in Motor vehicle Act. There also word "maxi cab" and "motor cab" is used. So every service related to all kind of motor vehicle is not restricted here in my view. It has to be vetted carefully whether the service availed is really fall under Rent a Cab or not. Reply By KASTURI SETHI: The Reply: Pl. go through this case law. 2005 (186) E.L.T. 143 (Tri. - Mumbai) ....
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....= 2005 (4) TMI 5 - CESTAT, MUMBAI Reply By Alkesh Jani: The Reply: Sir, I agree with the views of experts that ITC is not available. In short the services is for personal use and it is next to impossible for your to prove the nexus with furtherance of business. Reply By JAIPRAKASH RUIA: The Reply: Dear Sir, I have high regards to the experts and continue to raise my arguments and discussions.....
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.... I would here like to produce the sethi sir,s post in which the honorable HC has considered the rent a cab activity as business expenditure. "Tour operator" - for transportation of their employees to the residence and vice versa . High Court of Karnataka in the case of CCE v. Stanzen Toyotetsu India (P) Ltd. - 2011 (4) TMI 201 - KARNATAKA HIGH COURT has clearly held that these services....
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.... are for transportation of employees and credit of tax paid is eligible as input service. Since the issue has already been settled, CENVAT credit of service tax paid on tour operator service is allowed. Sethi sir,s post<br> Discussion Forum - Knowledge Sharing ....