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Whether itc can availed on car hire charges by company

Ravi SADhiyan (Practice) (4510 Points)

29 January 2018

Whether Company can be availed ITC credit of GST on Car Hire charges which were used for the purpose of business.

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6 Replies

DHARMESH BABUBHAI MISTRY (consultant) (1435 Points)
Replied 29 January 2018

No ITC Credit available of GST on car hire charges which were used for the purpose of Business.Only 3 cases ITC credit on car hire charges available if it is used for (a) Further supply of such vehicles or conveyances or (b) Transportation of passenger or (c) Imparting training on driving, flying, navigating such vehicles or conveyances.

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SHASHANK SARASWAT (ACCOUNTS EXECUTIVE) (81 Points)
Replied 23 June 2018

THIS EXCEPTION IS AVAILBLE WHEN ANY VEHICLE IS PURCHASED NOT WHEN VEHICLE IS HIRED.

R. B. Yadav (CMA, LLB) (Tax Consultant) (590 Points)
Replied 23 June 2018

No, ITC is not allowed on car hire charges - section 17(5)(b)-iii

SHASHANK SARASWAT (ACCOUNTS EXECUTIVE) (81 Points)
Replied 23 June 2018

what is rate of tax and SAC and whether reverse charge is applicable on the same.

If such service is received from unregistered dealer and GST is paid on the basis of reverse charge, then ITC is available or not?

R. B. Yadav (CMA, LLB) (Tax Consultant) (590 Points)
Replied 23 June 2018

Rate is as follows:0 1. 5% without ITC 2.12% with ITC & 3. 18% if value doesn't include cost of fuel HSN - 9964 No liability of RCM. No input in any case for receiver except where it is used to provide the outward supply of same nature.