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.