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Indirect Taxation

Tax paid 5% = Limited ITC is available for renting motor car Tax paid 5% = But no itc available for GTA Why ?

Sushmita Chowdhury

CA Inter

★ 715

23-Feb-24 12:24

127

Answers (8)

Yes right. Even for renting of car only same line of business ITC is allowed. In case of GTA, generally if 5% is opted supplier opts for RCM.

Shiva Teja

Faculty

23-Feb-24 13:06

Shiva Teja Faculty

Yes right. Even for renting of car only same line of business ITC is allowed. In case of GTA, generally if 5% is opted supplier opts for RCM.

Sir in Gita also there can be same line of business Then why is limited ITC not allowed there

Thread Starter

Sushmita Chowdhury

CA Inter

★ 715

23-Feb-24 14:00

Thread Starter

Sushmita Chowdhury

Sir in Gita also there can be same line of business Then why is limited ITC not allowed there

Correction = GTA not gita Sorry for my keyboard

Thread Starter

Sushmita Chowdhury

CA Inter

★ 715

23-Feb-24 14:00

Thread Starter

Sushmita Chowdhury

Correction = GTA not gita Sorry for my keyboard

Yes but that is not allowed as ITC.

Shiva Teja

Faculty

23-Feb-24 14:31

Shiva Teja Faculty

Yes but that is not allowed as ITC.

Why is it allowed for motor vehicle renting but not for GTA

Thread Starter

Sushmita Chowdhury

CA Inter

★ 715

23-Feb-24 14:35

My understanding is that generally when GTA opts 5 percent they would prefer RCM only

Shiva Teja

Faculty

23-Feb-24 14:36

Shiva Teja Faculty

My understanding is that generally when GTA opts 5 percent they would prefer RCM only

Thread Starter

Sushmita Chowdhury

CA Inter

★ 715

23-Feb-24 15:29

Thread Starter

Sushmita Chowdhury

Done.

Shiva Teja

Faculty

25-Feb-24 18:27

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