Menu
ITC can claimed or not
i registered dealer and i have plan to purchase car for business purposes . I can claim ITC for aginst car purchase invoice. it is eligible . kindly clarify this.
Replies (8)
Quick Summary
Blocked credit under 17(5)
Blocked credit under 17(5) motor vehicle is included is we assume that car is my doubt
Yes... I agreed to Mr Radhakrishnan reply...
@ Uma Maheshwari,
Car is also a motor vehicle. If It's used for business purposes (?) then You can claim ITC.
otherwise it will be blocked as per above said section...
@ Uma Maheshwari,
Car is also a motor vehicle. If It's used for business purposes (?) then You can claim ITC.
otherwise it will be blocked as per above said section...
No @ J. Uma Maheswari. You cannot claim ITC on Motor Vehicles as it is specifically BLOCKED under Section 17(5) clause (a) of the CGST Act 2017.
The ITC on Motor Vehicles having approved seating capacity of 13 Persons ( including the Driver ) is BLOCKED U/s 17(5)(a) of the CGST Act 2017. So you cannot claim ITC even if it is being used for business purpose. Kindly note that Section 17(5) overrides the Provision of Section 16(1) of the CGST Act 2017 ( which states that ITC shall be available on all Inputs, Input Services and Capital Goods "used in the course or furtherance of business" ).
The ITC on Motor Vehicles having approved seating capacity of 13 Persons ( including the Driver ) is BLOCKED U/s 17(5)(a) of the CGST Act 2017. So you cannot claim ITC even if it is being used for business purpose. Kindly note that Section 17(5) overrides the Provision of Section 16(1) of the CGST Act 2017 ( which states that ITC shall be available on all Inputs, Input Services and Capital Goods "used in the course or furtherance of business" ).
Thank you all for the reply finally i got the answer as per section 17(5) I cannot claim ITC
Your most Welcome Sir...
I agree with Mr.Sivam RC.
If you are dealing with some transportation services and you have purchased car for such services then you can claim ITC. Else this is a blocked credit under section 17(5)
Recent Topics :
- Is SAP FICO a good career option for finance and a
- Direct Cost booking
- TDS on Property Purchase Paid
- Cash Purchase Above ₹10,000, ITR/40A(3) Trea
- TDS on dividend to non resident shareholders
- Best CA Inter classes in Laxmi Nagar for Group 1?
- Gst refund
- Compliance under Society Act 1860
- Hi experts need help
- How to object stamp duty value if property is sold
Related Topics :
CAclubindia
