Motor cycle purchase

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Vaneet Monga (Querist)
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17 October 2019 Sir,
We have purchased one motor cycle for business purpose. Can we claim ITC and deprecation on the Motor cycle
Please advise

RAJA P M

RAJA P M (Expert)
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17 October 2019 ITC not available. but you can claim depreciation...

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Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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31 August 2020 You can claim ITC but then depreciation will be allowed in Value Ex GST

RAJA P M

RAJA P M (Expert)
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31 August 2020 ITC NOT AVAILABLE BRO...

WHAT A ACTIVITY BY YOU...?

VERY WELL TO SEARCH AND REPLY VERY OLDER QUERIES...

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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31 August 2020 Hello Raja P M Sir, Good Evening,

Thanks for correcting me.

ITC is not available on Motor Bikes but it can be availed on Motor Vehicles subject to terms and conditions...I think I mix both of these. anyways Thanks to you.

ITC is not available for Motor vehicles used to transport persons, having a seating capacity of less than or equal to 13 persons (including the driver).

Further, ITC is not available on vessels and aircraft.

For example, XYZ & Co. buys a car for their business. They cannot claim ITC on the same.

Exceptions to ITC on motor vehicles/vessels/aircrafts:

ITC will be available when the vehicle is used for making taxable supplies by the following.

a) Supply of other vehicles or conveyances, vessels or aircrafts.

If you are in the business of supplying cars then ITC will be available.

For example, a car dealer purchases a car for Rs.50 lakh plus 14 lakh GST (ignoring cess calculations). The same car was later sold for 70 lakhs along with Rs.19.60 lakh GST. Since he is a dealer, he can claim ITC of 14 lakhs and pay only Rs.5.60 lakh (19.60 – 14).

b) Transportation of passengers

If you are providing transportation of passengers then ITC will be allowed on the vehicle purchased.

For example, Happy Tours purchased a bus for inter-city transport of passengers. ITC is available.

c) Imparting training on driving, flying, navigating such vehicle or conveyances or vessels or aircrafts, respectively.

A driving school purchases a car to give training to students. The school can claim ITC on the GST paid on the car.

d) Transportation of goods

ITC will be allowed on motor vehicles (and other conveyances) used to transport goods from one place to another.

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