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ITC for transportation of employees in bus, Goods and Services Tax - GST

Issue Id: - 114462
Dated: 7-1-2019
By:- Madhavan iyengar
ITC for transportation of employees in bus

  • Contents

A Vehicle operator has a 50 seater bus, and has a contract with a company for pick up and drop of employees of company to factory in the 50 seater bus,

He levies 12% GST can company get ITC on the Charges paid to the vehicle operator. SAC code 996601

issue: ITC eligibility under current law and post amendment 01/02/2019

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Posts / Replies

Showing Replies 1 to 12 of 12 Records

1 Dated: 5-2-2019
By:- DR.MARIAPPAN GOVINDARAJAN

In my view it is eligible.


2 Dated: 6-2-2019
By:- KASTURI SETHI

I support the view of Dr.Govindarajan, Sir.

I am also of the view that if any supplier of goods or services hires bus or any other motor vehicle carrying more than six passengers for their employees or otherwise, shall not fall under the definition of rent-a-cab u/s. 17(5) and ITC will be allowed on services which fall under HSN 996601.


3 Dated: 23-2-2019
By:- Bipin Parmar

Dear Experts,

17(5)(b)(iii) travel benefits extended to employees on vacation such as leave or home travel concession:

Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.

Will it affect the eligibility of ITC on pickup-drop facility provided to employees?


4 Dated: 23-2-2019
By:- KASTURI SETHI

No. It will not effect. Such pick drop of employees is not obligatory for employers.


5 Dated: 24-2-2019
By:- Madhavan iyengar

sirs please see this judgement of haryana aar where they have held that irrespective of the seating capacity vehicles carrying passengers will fall under rent a cab and covered by disallowance u/sec 17(5)

AAR judgement in ref: HAR/HAAR/R/2018-19 = 2019 (2) TMI 1081 - AUTHORITY FOR ADVANCE RULING, HARYANA.

experts pls enlighten


6 Dated: 24-2-2019
By:- Bipin Parmar

Dear Kasturi Sir,

I'm still confused. Section 17(5)(b)(iii) says ITC on travel benefits extended to employees would be available only if it's obligatory for the employer to provide. However here as you said it's not obligatory for the employer to provide such travel benefits. Then how would ITC be available?

Please clarify.

Thanks

Bipin


7 Dated: 24-2-2019
By:- KASTURI SETHI

SH. Madhavan iyengar, JI,

Pl.inform name of the appellant/party in AAR Haryana.


8 Dated: 24-2-2019
By:- KASTURI SETHI

Dive deep into the legal meaning of the word, 'obligatory'. One of the legal meanings is 'statutory binding'. For example; Maintaining safety standards is a statutory requirement . Availing LTC is not a statutory requirement.You can search for more statutory requirements for the employer.


9 Dated: 24-2-2019
By:- Madhavan iyengar

Kasturiji

YKK India Pvt Ltd = 2019 (2) TMI 1081 - AUTHORITY FOR ADVANCE RULING, HARYANA

advance ruling haryana 2018-19/04


10 Dated: 24-2-2019
By:- KASTURI SETHI

In this aspect, AAR Haryana has discussed /covered all the aspects including the issue of 'Obligatory for the employer----------------'. The applicant in this case could not prove that Rent-a-cab was obligatory on the part of employer to provide this service to their employees'.


11 Dated: 4-3-2019
By:- Harsha Dattani

Dear Expert,

We have transport facility for staff from station to office in bus of 50 capacity, our transporter not charging us GST, whether we need to pay RCM @5% and can claim input credit.

Please reply

Harsha


12 Dated: 5-3-2019
By:- KASTURI SETHI

Hiring bus is not under RCM.


1

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