Menu
Input credit on hp goods
is it possible to claim input tax credit on goods which s under hypothication.
for ex. a person engaged in transport business bought a new car in loan from a bank. can he claim IT credit in this scenario. cos one of the nbfc claims that they r d legal owner till payment of dues and hirer can claim IT credit only after paying last emi... is this correct?
Replies (1)
Dear Guhan,
You can definately claim Input tax Credit on Goods Purchased under Hypothication. Transactions under Hypothication Sysrem (Under Hire Purchase/Lease Transaction) are treated as Deemed Sales under Article 266 (29A) of Constitution of India. According to this article sale under hypothication system is deemed to be normal sales & the provisions of tax apply to it as they apply to normal sales. In such transactions buyer is the only & real owner & NBFC is just financer. So in my opinion you can definately claim Input Credit.
Regards: -
CA Harshal Pahade
Contact: - 9272344759
Recent Topics :
- Section 54F Exemption
- Would you use a free, open-source alternative to s
- Business & Finance
- Report in GSTR 1 ( Credit Note ) for Wrong GST Rat
- Reply of summons issued under section 70 of the cg
- How to Bulk GSTIN Number Verify and Validation
- OPC Annual Filing Defaults – Need Guidance t
- OPC Annual Filing Defaults – Need Guidance t
- FCGPR of a past period
- Discuss and Download CA Final Question Paper Nov 2
Related Topics :
CAclubindia
