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itc on driver service with car

bipin (accountant) (115 Points)

09 May 2019

if a company enters into an agreement with Car hire company on a monthly hiring of a vehicle along with a driver, whether the GST charged by the car hire company can we claim ITC ?

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7 Replies

Hemant (Article) (22 Points)
Replied 09 May 2019

Company can not claim as the GST rate pertaining to 5 % being No ITC on this

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bipin (accountant) (115 Points)
Replied 09 May 2019

if company charge 18% than we claim itc?

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 09 May 2019

Yes... You can claim.

bipin (accountant) (115 Points)
Replied 09 May 2019

its a rent a cab service so its cover under ineligible itc?

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 09 May 2019

No the company cannot claim ITC on Hiring of Vehicle , its Block Under Section 17(5) , yes ITC is available when its obligatary for an Employer to provide the same to its employee under any Law .

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CA Haritha Komma (Chartered Accountant) (1147 Points)
Replied 09 May 2019

The rate of 5% without ITC or 18% with ITC is applicable to vendor and is not relevant for customer to avail ITC. Irrespective of rate charged, ITC is not available to customer being restricted under sec 17(5) of CGST Act.

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