Dear Sir /Madam,
we are partnership firm as well as we are taking input on Purchase of Raw matireal.
My query is .
recently My MD was bought New car in The company Name car invoice saying GST out .
here shall we take input claims and remain to be Paid GST portal ?
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Input credit GST on Purchase of Car
Replies (10)
you will purchase the only purpose of company or not
you will purchase the car only for the purpose of company or not
input credit can take If car is using for providing out service
examples: car using for transportation (driving school)
I thought MD purchased car for personal use, if anything purchased for personal use for that we can take input tax credit
examples: car using for transportation (driving school)
I thought MD purchased car for personal use, if anything purchased for personal use for that we can take input tax credit
1) Incase of Employee's Transport ie pick up and Drop for office.
2) Incase of Car was purchased for using MD personal / ofcourse the above inv's in the name of company only ....
* Shall we take in put of GST ?
* if Yes how to Pass an entry in Tally software ?
2) Incase of Car was purchased for using MD personal / ofcourse the above inv's in the name of company only ....
* Shall we take in put of GST ?
* if Yes how to Pass an entry in Tally software ?
No..... ITC not available...
If the invoice is in the name of entity, you can take credit accordingly. And the entry will be
Car - Dr
Gst (cgst/sgst/igst)- Dr
party- Cr
Car - Dr
Gst (cgst/sgst/igst)- Dr
party- Cr
| Originally posted by : VRS Rana | ||
 |
If the invoice is in the name of entity, you can take credit accordingly. And the entry will be Car - DrGst (cgst/sgst/igst)- Drparty- Cr |  |
You really....!!!
Is ITC available for above query...?
If YES... Please elaborate this availability...
according to GST credit rules , credit can be availed on business or non business activities
Note- This is as per GST act but when we proceed with income tax act then we will not be able to take depreciation on tax included in capital goods.
Note- This is as per GST act but when we proceed with income tax act then we will not be able to take depreciation on tax included in capital goods.
as per 17(5) blocked credits, no ITC is available with respect to the purchase of car unless the company similar outward supply. Like in the business of sale or purchase of car...or transportation of passenger or goods
After going through the above provisions, one can easily conclude that, the input tax credit of inward vehicles and other expenses as incurred in relation to the vehicles cannot be denied under following circumstances;
- Input tax credit cannot be denied in case the motor vehicles are being used by the business entities for transport of its raw-material, semi-finished goods, final produce and/or capital goods like plant & machinery, spares, stores and/or fuel; and
- Input tax credit even cannot be denied in the case where the business entities use the vehicle for transport of its staff or workers on chargeable basis.
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