Please state the procedure of claiming Input Tax Credit on Vehicle & Medical insurance of family members of employees?

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    Aug 24, 2023 05:14 PM 1 Answers Input Tax Credit
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    admin
    Aug 24, 2023
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    The ITC of vehicle is restricted in case of specified vehicles under section 17(5)(aa). This section provides ITC shall not be available where vessels and aircrafts except when they are used for making the following tax supplies namely a) further supply of such vessels or aircrafts, b) transportation of passengers, c) imparting training on navigating such vessels, d) imparting training on flying such aircraft and e) for transportation of goods.

    Similarly, As per Section 17(5)(b)(i) for Medical Insurance of employees, ITC shall
    be available in respect of such goods or services or both where an inward supply of
    such goods or services or both is used by a registered person for making an
    outward taxable supply of the same category of goods or services or as an element
    of a taxable composite or mixed supply provided that input tax credit in respect of
    such 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 for the time being in
    force. Thus, if insurance of family members is required to be provided under law,
    only thus the ITC shall be available.