ITC ON 7 SEATER VEHICLE FOR EMPLOYEES PICK UP & DROP


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Quick Summary
A manufacturer purchased a 7-seater vehicle for employee pick-up and drop services and is seeking advice on Input Tax Credit (ITC) eligibility. The consensus is that ITC is not eligible for 7-seater vehicles as they are considered blocked under Section 17(5) of the relevant tax laws.

24 April 2023 WE ARE MANUFACTURER AND PURCHASED A VEHICLE FOR 7 SEAT CAPACITY FOR OUR EMPLOYEES PICKUP AND DROP, KINDLY ADVISE THE ITC IS ELIGIBLE FOR THIS.

24 April 2023 Not eligible as it's 7 seater vehicle.

24 April 2023 As per section 17(5), it is blocked for availment.


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