Regarding itc

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

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

CA Final

★ 20K+

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?

Thread Starter

kalai vani

CA Inter

★ 1K+

08-Feb-21 11:28

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

Shiva Teja

Faculty

03-Mar-21 15:46