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Inputs tax credit
is itc (input tax credit) allowed on car serviceing and reparing which is name of the firm
Replies (11)
Quick Summary
No. it's not goods vehicle
Can we claim input on car servicing
As per section 17(5) cannot claim.
Agree with V Subramaniam , Input Tax Credit Not available , its blocked Credit under section 17(5) of the CGST act .
Can we show car service expense in profit and loss account
Read sec 17(5) thoroughly
As per AS 10 ( Accounting Standards) , any cost directly attributable to brining the asset to the location and condition necessary for it to be capable of operating should be Capitalise.
So please Clerify, is it a new Car ? or when you brought this Car and shown in balance sheet?.
So please Clerify, is it a new Car ? or when you brought this Car and shown in balance sheet?.
@ Sayed Nabil,
Yes You can show the car service expenses in profit and loss account...
Yes You can show the car service expenses in profit and loss account...
Yes agree with Raja P M Sir , If car is old then you Can show service expenses in P & L A/c .
If the car is used for furtherance of business then chk sec 17(5)
As per section 17(5) of CGST Act, Servicing, repairs and maintenance and general insurance of a motor vehicle, aircraft and a vessel are classified as blocked credits. Exception available if the vehicle is used for transport of goods or used for making taxable supplies.
In this case, we can't claim ITC on servicing, repairs of car. We can claim ITC only if car is used as cab/related services.
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