Blocked credit

Direct Taxation

Whether ITC available for the purchase of JCB for the business? (Basic understanding JCB won't come under the definition of motor vehicle)...pls clarify

george joseph

CA Final

★ 5K+

26-Sep-21 04:39

731

Answers (3)

Yes, ITC is eligible. By looking at definition of Motor vehicles it may be concluded that JCBs and other vehicles used in construction field are not motor vehicles. But there is ambiguity on the definition. The term â??used for transportation of goodsâ?? is yet to be defined. And putting restriction of ITC on construction equipment vehicles, mining equipment vehicles would not be the intention of the law.

vishwam mandepudi

Qualified CA

★ 2K+

27-Sep-21 10:52

Is there any case laws regarding the same. I couldn't find one. Then it would be more helpful

Thread Starter

george joseph

CA Final

★ 5K+

27-Sep-21 18:29

Hi. Law has specified that ITC related to motor vehicle for transportation of passengers cannot be claimed. Effectively it means that ITC related to other vehicles can be claimed.

Shiva Teja

Faculty

28-Sep-21 10:36