Itc on bus & car purchase - given on rent to company

This query is : Resolved

ravindra (Querist)
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27 December 2017 Hello Sir

I have following query -

- Assessee have purchased one Bus and one car to give on rent to different companies for their employees and guest pick up and dropping facility. They charged rent on monthly basis including per KMS basis. Need clarifications on following with reference to Notification no 11/2017, 20/2017, 31/2017 of Central Tax (Rate)

1. What should be the SAC code 9964 passenger transport services or 9966 Rental Services of Transport Vehicle.

2. Whether Assessee can avail ITC benefit on Bus and Car Purchase. If I go with SAC code 9966 then as per negative list of ITC u/s 17(5) since the credit is available in case of transportation of passengers only will it be correct to avail the credit on Rental services.

3. Whether Transport of passenger cover rental services of bus and car also, under notification no 11- SAC code 9964 clause (vi). If not what kind of services covered under this category.

4. Whether the customer can avail GST credit on BUS and Car both.

CA S K MISHRA

CA S K MISHRA (Expert)
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27 December 2017 Yes, there are provision for getting ITC of GST paid on purchase of passenger vehicle, if used for furtherance of business, subject to fulfillment of certain conditions. for details you may refer following book.

https://www.amazon.in/dp/194832105X

https://www.infibeam.com/search?q=gst+s+k+mishra&us=true