ITC for vehicle hire for pickup drop employee, Goods and Services Tax - GST

[Harshit Gandhi]

Can we get itc on vehicle hire for pickup drop employee

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

If you provide the service of pickup and drop of employees free of cost, then the amount spent by you on provision of sudh service will be added to your cost and it can be said the service is used in the course or furtherance of hi your business and you are eligible to avail ITC of gst paid on such service.

If you collect the cost of such pickup and drop from the employees then it will be treated as for personal use of your employees and in view of the provision of Section 17 (5) (b) (iii) ITC of gst paid on for availing such service is not admissible.

[KASTURI SETHI]

I support the views of Sh.Ranganathan, Sir.

[Ganeshan Kalyani]

The factories are generally set up away from City where pick up and drop of employees becomes compulsory. This fact can becomes a valid point to justify the claim of credit.

[Ramaswamy S]

The amendment has been passed by the Lok Sabha. Once the amendment is through, credit is allowed for pick up and drop facilities provided to the employees.

Regards

S.Ramaswamy

[Ganeshan Kalyani]

The notification is yet to be published by CBIC

[DR.MARIAPPAN GOVINDARAJAN]

The Bill makes input tax credit available for such benefits if the employer is obligated by law to provide these benefits.