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Inputs tax credit

Sayed Nabil (307 Points)

08 December 2023

is itc (input tax credit) allowed on car serviceing and reparing which is name of the firm

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11 Replies

Kishor Lulla (784 Points)
Replied 08 December 2023

No. it's not goods vehicle

Sayed Nabil (307 Points)
Replied 08 December 2023

Can we claim input on car servicing

V SUBRAMANIAM (500 Points)
Replied 09 December 2023

As per section 17(5) cannot claim.

prasad Nilugal ( GST Practitioner & Accounts ) (14169 Points)
Replied 09 December 2023

Agree with V Subramaniam , Input Tax Credit Not available , its blocked Credit under section 17(5) of the CGST act .

Sayed Nabil (307 Points)
Replied 09 December 2023

Can we show car service expense in profit and loss account

sabyasachi mukherjee (26067 Points)
Replied 09 December 2023

Read sec 17(5) thoroughly

prasad Nilugal ( GST Practitioner & Accounts ) (14169 Points)
Replied 09 December 2023

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?.

RAJA P M ("Do the Right Thing...!!!") (127173 Points)
Replied 09 December 2023

@ Sayed Nabil,

Yes You can show the car service expenses in profit and loss account...

prasad Nilugal ( GST Practitioner & Accounts ) (14169 Points)
Replied 09 December 2023

Yes agree with Raja P M Sir , If car is old then you Can show service expenses in P & L A/c .

sabyasachi mukherjee (26067 Points)
Replied 10 December 2023

If the car is used for furtherance of business then chk sec 17(5)

Yalamarthi Srinivasa rao (Ca Articleship ) (16 Points)
Replied 10 December 2023

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.