- Employers in Tamil Nadu can claim input tax credit (ITC) on GST paid for leasing vehicles that transport women employees at night and early morning.
- This ruling applies to states where employers are required to drop women employees at specific hours.
- The ITC can be claimed if employees arrive or leave office between 8 pm and 6 am, starting from May 28, 2019.
- GST officials argued that ITC cannot be claimed for rent a cab services, citing a provision in the GST law.
- However, the AAR stated that the provision was amended in January 2019, allowing ITC for goods or services provided to employees under any law.
- The Tamil Nadu Shops and Establishment Act requires employers to provide transportation to women employees working between 8 pm and 6 am.
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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