My query is as
follows
My client has purchased a Bus and given on
monthly rent to Company
Bills are prepared by company itself. Company
has charged 5% GST on monthly bill
My query is whether ITC of bus purchase can be
claimed against rental bill if party charge 5% GST to
Company?
My personal opinion is ITC will not be available
, what to do to Claim ITC of bus purchased
pls. guide me in
this regards
Reply
Dear Sir,
As per section 17(5) of the CGST Act, 2017 input tax credit
shall not be available in respect of purchase of motor vehicle and other
conveyance except when they are used for
·
Further supply of such
vehicle or conveyance
·
Transportation of
passengers
·
Imparting training on
driving, flying, navigating such vehicles or conveyances;
None of the above three cases are similar to your client
case.
Therefore, ITC is not admissible in this case.