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Regarding itc

Sir/madam In gst a purchase of car input can we claim as input if we r doing a proprietory business is it possible to take input (Not doing car business)


kalai vani

kalai vani

CA Inter

680

07-Feb-21 17:29

25

Answers (4)

Best Answer

When blocked? - ITC on car with seating capacity of <= 13 persons (incl. driver) - for transportation of persons When allowed? - further supply of such MV (re-sale) - transportation of passengers - imparting training on driving such MV # ITC on MV with seating capacity of > 13 persons (incl. driver) used for any purpose is allowed # ITC on other MV, other than ineligible MV (like used for transportation of goods, JCB etc.) is allowed # Now suppose you buy a car with capacity of <= 13 and use it for transportation of goods. Then will ITC be allowed? - See, here motor vehicle registration must be in alignment with the law for claim of ITC, i.e. you can't but a Hyundai Creta (vehicle for personal use) in the name of business and claim ITC on it saying that it is used for transportation of goods.


Deepak Gupta

Deepak Gupta

CA Inter

1K+

08-Feb-21 14:33

No, the gst credit paid on purchase of car cannot be claimed, unless you are in the business of buying selling cars and/or travel business


sudha reddy

sudha reddy

Moderator

08-Feb-21 10:07

Madam, But if the propreitor purchased the car for offfical purpose and in the company name only then also they cannot claim itc?


kalai vani

kalai vani

CA Inter

680

08-Feb-21 11:28

Even if it is on company name and for business purpose still credit cannot be claimed


Shiva Teja

Shiva Teja

Faculty

03-Mar-21 15:46

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