ITC on the motor vehicle used for the transportation of employees

ITC / Input 1514 views 6 replies
hello sir,

Suppose i am manufacturing company and i have taken bus on the rent for the providing transportation services to employees

Can i Eligible to Claim ITC.

Thanks in advance
Replies (6)
yes you can claim ITC on bus
No you cannot . As per Section 17(5) ITC is bock on Motor vehicle

Yes if Government notify Bus Service obligatory for an employer to provide to its employees under any law for the time being in force then you can claim ITC
agreed with pankaj sir

Yes ITC can be availed as it is used in the course or furtherence of the business.

This supply is termed as hiring service, So section 17(5) is not applicable. 

The amount paid is known as hirring charges.

@ Nikhil

kindly below the Extract from Section 17(5)

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

Hence Rent a Cab has the same meaning of hiring Bus , so No ITC can be claim
ITC on transport vehicle for delivery of goods. can I eligible to claim ITC


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