Rent a car input credit

MURALIDOSS (INCOME TAX PRACTITIONER) (1314 Points)

06 July 2019

IS RENT A CAR PURCHASED FOR CAB SERVICE MEANS THE TAX IS ELIGIBLE FOR ITC OR NOT?

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3 Replies

rishi (student) (408 Points)
Replied 06 July 2019

if outward supply of cab service is taxable only then credit of input tax paid is allowable

Akhil (Student CA CPT ) (22 Points)
Replied 06 July 2019

You can eligible for ITC, provided that you should not opt for the 5% rate of tax on outward liability

Jiten Patel (15 Points)
Replied 07 July 2019

On smae line of business you can bill for 5% also and avail ITC

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