Purchase of Tractor for Agriculture Research Institute for Research farm ITC available - Reg.

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An agriculture research institute has purchased a tractor for its research farm and is inquiring about claiming Input Tax Credit (ITC). The tractor's ITC is claimable if it's used directly for taxable activities that contribute to the institute's taxable supplies. However, ITC may not be available if the tractor is used for exempted supplies or non-business purposes.

Srimannarayana

Srimannarayana (Querist)

17 December 2024 Ours is an Agriculture Research Institute we have purchased a tractor for research fram do we get ITC?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

17 December 2024 Yes, the tractor must be used in a manner that directly relates to the taxable activities of the institute. If the tractor is used solely for research activities that contribute to taxable supplies, you should be able to claim ITC. However, if the tractor is used for exempted supplies or for non-business purposes, the ITC might not be claimable.

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Srimannarayana

Srimannarayana (Querist)

17 December 2024 Thanking you very much sir

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

17 December 2024 You are welcome.

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