ITC ON BUS PURCHASE – GIVEN ON RENT TO COMPANY FOR THEIR EMPLOYEES PICK UP AND DROP
Query (Issue) Started By: – RAVINDRA SANCHETI Dated:- 27-12-2017 Last Reply Date:- 13-3-2018 Goods and Services Tax – GST
Got 6 Replies
GST
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 for rent services – 9964 passenger transport services or 9966 Rental Services of Transport Vehicle. As per me should be 9966.
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en on Rent .
As per Sec 17(5)(a) – ITC will not be available on PURCHASE OF MOTOR VEHICLE & OTHER CONVEYANCE except when it is for transportation of passengers . It will not be correct to avail the credit on Rental services.
Clause vi – 9964 covers where owner of motor vehicle used it for transporting passenger . In your case its being rented out , hence it covers under 9966 .
Regards
Reply By CS SANJAY MALHOTRA:
The Reply:
ITC Credit is available if the vehicle is given on rent. It's usage can be for any purpose and in your case, the service rendered is Renting of Motor Vehicle and ITC admissible.
Reply By KASTURI SETHI:
The Reply:
Sh.CS Sanjay Malhotra Ji,
Sir, Such replies/clarification are worth saving to be used as ready
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