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

INPUT TAX CREDIT ON PURCHASE OF SERVICE VAN

17 February 2020

When we purchase a Van to use as a running service VAN through 2 districts, is there any problem for availing input tax credit on such purchase. Section 17(5) specifically disallows input tax credit on purchase of vehicle. So kindly help me to know whether input tax can be availed or not?

Reply
Follow
Share

1 Replies

Rajat jain (student) (167 Points)
Replied 17 February 2020

As per section 17(5) if the seating capacity of Van is more than 13 person the there is no block credit and u can avail ITc
bt if its less than 13 person than u cannot take ITc if u use this van other than any of these conditions
1 . for further supply of van (means business of sale and purchase of motor vehicle)
2. For Transportation of passenger
3. for given Traning on driving for such vehicle

if any of the condition u done than u can take ITc on ur Van
otherwise No ITc is avail