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Query Answer
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Dear Sir,

QUERY:

Question 1: Can a private limited company take credit of motor car repairing expense of car used for business purpose?

Question 2: employees are provided bus service for commutation from home to factory and from factory to home. For this, the transport agency raise a bill with 5% GST. We have paid full amount. Can we claim ITC?

Kindly solve my problem at the earliest.

Reply

Dear Sir,

1) Services in the nature of repairs, insurance etc. for motor vehicles are not hit by the blocked credit provisions contained in Section 17(5) of GST law and accordingly ITC for the same is available provided these services are used in the course or furtherance of business. Hence, the company is eligible to take ITC on the same.

2) As Section 17(5) is also not hit in this case, the employer can claim ITC towards payment made to transport agency for availing bus services for employees.

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