ITC on Four Wheeler motor vehicle

This query is : Resolved 
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This discussion clarifies the eligibility for Input Tax Credit (ITC) on purchasing a four-wheeler motor vehicle when used solely for contract hire or as a taxi service for companies. It confirms that ITC is available if GST is charged on the contract receipts. The conversation also touches upon how to declare this income for Income Tax purposes, suggesting it can be shown under Section 194C and potentially included in presumptive taxation under Section 44AD with an estimated profit margin.

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(Querist)
29 July 2024 1- Can ITC be available on purchase of a four-wheeler motor vehicle if it is solely purchased to give it on a contract basis to companies?
2- If it is used as Taxi and given to companies on a contract basis.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
29 July 2024 1 and 2 Yes if GST charged on contract receipt.
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Satish Mehra

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Satish Mehra (Querist)
29 July 2024 And sir how to show this income in Income Tax.
1- Can we show these receipts (car on contract) u/s 194c in 44AD with 25-30% profit...
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
29 July 2024 Yes, no problem...
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Satish Mehra

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Satish Mehra (Querist)
29 July 2024 thank you very much sir
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
29 July 2024 You are welcome...
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