VAT for taxi company employees

Hello, I need to know if a taxi company pays for the health check up for its employees, will it be subject to vat at the standard rate?

Ujjwal Pawra18/01/2021 14:45:13

For zero rating of healthcare services, certain conditions have to be fulfilled. One such condition is that the service should be provided to the individual patient. When a company, requests/ instructs for the healthcare service for its employee, the company becomes the fiduciary recipient of the service. Hence it should be subject to standard rate of tax.

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Taiyab Dahodwala06/02/2021 12:25:37

Sir, in this case Taxi fare is taxable Supply?

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Parth Sharma13/02/2021 15:53:47

your question is not clear. Local passenger transport is exempt supply as per A 45 of ER, thus, the company would not be recovering input tax. Now, deemed supply provisions should not hit as the company wouldn’t have recovered any input tax on expenses related to motor vehicles. So, in this case taxi fare should not be treated as taxable supply.

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