ITC on Hiring of motor vehicle

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....TC on Hiring of motor vehicle<br> Query (Issue) Started By: - Kumar Kedia Dated:- 2-11-2020 Last Reply Date:- 3-11-2020 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>Sir, A company is engaged in providing helicopter transportation services to the customer. The company has the contract with travel operator and whenever any employee uses the cab services, the travel operator raises the bi....

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....ll to company on which company deducts TDS. Can he avail credit on hiring of motor vehicle for the transportation of employees. Can it be said that it is providing the same category of service? Reply By Rajagopalan Ranganathan: The Reply: Sir, According to Section 17 (5) (a) of CGST Act, 2017, &quot;input tax credit shall not be available in respect of the following, namely :- (a)&emsp;motor v....

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....ehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely :- (A)&emsp;further supply of such motor vehicles; or (B)&emsp;transportation of passengers; or (C)&emsp;imparting training on driving such motor vehicles. Your employee cannot be treated as ....

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....passenger. Hence ITC cannot be availed by you on hiring of motor vehicle for the transportation of employees. Reply By Ganeshan Kalyani: The Reply: Rent-a-car service is under negative list. ITC is not allowed. Reply By KASTURI SETHI: The Reply: Mr.Kumar Kedia, I agree with both experts. I think your query remains unanswered. Q. Can it be said that it is providing the same category of servic....

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....e ? Ans. It is not in the same line of business. See all replies against Issue ID No. 115542 dated 18.10.19.<br> Discussion Forum - Knowledge Sharing ....