Itc on used car
This query is : Resolved
03 May 2019
Requesting clarification on following query,
Whether the second hand dealer can claim ITC on used car provided the dealer pays GST on entire sale value at full tax rate.
If yes, requesting you to share the related notifications.
Whether the second hand dealer can claim ITC on used car provided the dealer pays GST on entire sale value at full tax rate.
If yes, requesting you to share the related notifications.
04 May 2019
ITC not available on Vehicles purchase other than Section 17(5) of CGST Act, 2017, it clearly stipulates that ITC of motor vehicle is available for ‘namely’ services, as per your query the motor vehicle as mentioned by you is not commercially registered under Motor Vehicle Act, therefore, it cannot be used for any commercial purpose such as transportation of passengers or goods.
04 May 2019
Thank you for your quick response.
In my case, the dealer is a leasing company and will be leasing the car to my company and I will be owning the car as an employee. The monthly rental is also charged at full GST and cess. Under this circumstances, I believe the dealer (being a car leasing company can take ITC for used cars provided GST is paid on entire sale value and full rate.
In my case, the dealer is a leasing company and will be leasing the car to my company and I will be owning the car as an employee. The monthly rental is also charged at full GST and cess. Under this circumstances, I believe the dealer (being a car leasing company can take ITC for used cars provided GST is paid on entire sale value and full rate.
04 May 2019
Yes. ITC is available on motor vehicle, as it is being used for further supply [i.e. lease] of motor vehicle itself.
04 May 2019
Thank you for your response.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- Sales return eway bill
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- Taxation on LTCG for property sold after 24JUL2024
- GST ON DAMAGED GOODS
- Tax liability on income of freelancer
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
