Employers can claim input tax credit (ITC) on the goods and services tax (GST) paid on leasing vehicles that ferry women employees at night and early morning in Tamil Nadu, the authority for advance rulings (AAR) has said.
The ruling would hold precedence in states where employers are obliged to drop women employees at specific hours, said experts.
The ITC can be claimed if the employees arrive or leave office at 8 pm and 6 am, with the rule being effective from May 28, 2019 in Tamil Nadu, the AAR ruled.
GST officials had argued that tax paid on rent a cab service cannot be availed as ITC, according to a provision in the indirect tax law. The provision cited was the section 17(5) (b)(iii) of the GST law.
However, AAR said the section was amended through a notification in January 2019 whereby ITC in respect of 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 with effect from May 28 of that year.
It is obligatory for employers to provide transportation to women employees working between 8 pm and 6 am, according to the Tamil Nadu Shops and Establishment Act.
____________________________________________________________________________________________________________
🎉 Join our dedicated WhatsApp channel for Real-time GST Updates and Other Tax Updates !!
 |
|
Dear Friends & Colleagues, Exciting News! 🎉 We’ve launched a dedicated WhatsApp channel that delves into the complex yet fascinating world of Indian Taxation, aptly named “GST with Adv. Bimal Jain & A2Z Taxcorp LLP.” Join us here: [https://whatsapp.com/channel/0029Va5XmHg9WtC4wKWmFr2a] Joining our WhatsApp Channel is as easy as 1-2-3: 🔍 Step 1: If you’re on mobile, simply click the invite link. If you’re on desktop, scan the QR code using your phone. 🤝 Step 2: Click ‘Follow’ at the top-right corner of your screen. 🔔 Step 3: Don’t forget to hit the bell icon at the top to receive timely notifications. This channel is great for Tax Professionals, Lawyers, CAs, CSs, CMAs, and anyone who wants to know more about Indian taxes. It doesn’t matter if you’re experienced or just getting started in the tax world – this is the perfect place to stay Updated. Feel free to share this channel link with anyone interested in learning about Indian taxes. Your support is greatly appreciated! 🙏 Best Regards, Follow us on our social media for more updates: |