LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

FIXED ASSETS JCB PURCHASE

prasad (EMPLOYEES) (315 Points)

16 November 2017

I can claim ITC If JCB purchased for business purpose.

Reply
Follow
Share

12 Replies

RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 16 November 2017

17 (5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:—

(a) motor vehicles and other conveyances except when they are used––

(i) for making the following taxable supplies, namely:—
- (A) further supply of such vehicles or conveyances ; or
- (B) transportation of passengers; or
- (C) imparting training on driving, flying, navigating such vehicles or conveyances;
(ii) for transportation of goods;

What is Your Nature of Business...?

aman singh (CA ) (102 Points)
Replied 16 November 2017

yes, you can claim ITC provided you are not claming depreciation on tax component.

prasad (EMPLOYEES) (315 Points)
Replied 16 November 2017

service provider to builder construction

prasad (EMPLOYEES) (315 Points)
Replied 16 November 2017

Raja pm. sir

RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 16 November 2017

Yes... You can take ITC...

VIPIN GUPTA (PARTNER) (419 Points)
Replied 16 November 2017

As I under stand first the vehicle should be motor vehicle as per motor vehicle act and then it's availability of credit be judged

prasad (EMPLOYEES) (315 Points)
Replied 17 November 2017

OK I can not claim depreciation income tax ?

RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 17 November 2017

Yes... You can claim Depreciation (Except GST Tax) for the basic value of the JCB...

prasad (EMPLOYEES) (315 Points)
Replied 17 November 2017

thanks sir,

depreciation rate?

CA. Mayur M. Mamtora (Chartered Accountant) (162 Points)
Replied 17 December 2018

As per FAQ on Mining Sector available on CBIC Website, quoting Answer to FAQ No. 21 for your kind reference :

"The provision of Sec. 17(5) (a) of the CGST Act, 2017 restricts credit on motor vehicle for specified purposes listed therein. Further, in terms of the provision of Section 2(76) of the CGST Act, 2017 the expression ‘motor vehicle’ shall have the same meaning as assigned to it in Clause (28) of Section 2 of the Motor Vehicle Act, 1988, which does not include the mining equipment, viz., tippers, dumpers. Thus, as per present provisions, the GST charged on purchase of earth moving machinery including tippers, dumpers used for transportation of goods by a mining company will be allowed as input credit."

Link to above FAQ is given hereunder :

https://www.cbic.gov.in/htdocs-cbec/gst/faq-mining.pdf

Hence in your case, Input Credit should be available.

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 17 December 2018

There is a need to differentiate between a material handling equipment like JCB- Classification also would not be in Chapter 87. Certainly available as long as depreciation not claimed on the ITC part.

ankit bhaniramka (icai) (3 Points)
Replied 17 January 2019

Yes you can claim the ITC on JCB or Dumper Because as per section 17(5) block credit applicable only on Motor Vehicle like Car, and when we study definition of Motor Vehicle then it's not include JCB or dumper,

JCB or dumper include in Plant & machinery