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ITC on Activa

vishal (na) (175 Points)

17 June 2019

CAN ITC BE CLAIMED ON ACTIVA PURCHAED BY COURIER AGENCY FOR SUPPLYING GOODS?

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19 Replies

Sai Prabhu Narayanan (Articled assitant ) (161 Points)
Replied 17 June 2019

According to me ,No you cant claim ITC for two wheelers purchased for business

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vishal (na) (175 Points)
Replied 17 June 2019

thanks but as according to sec 17(5) vehicle used for Transportation of goods are eligible for itc so here also it is used for supply of goods?

A B Kundu (Professional) (1422 Points)
Replied 17 June 2019

Yes, ITC available.

Twinkle Kihhan (64 Points)
Replied 17 June 2019

What kind of goods do you supply on activa?

vishal (na) (175 Points)
Replied 17 June 2019

goods can be of any type but the question is weather

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vishal (na) (175 Points)
Replied 17 June 2019

*whether the itc available as per 17(5) itc on transportation of goods are eligible

CA.Vikash (Na) (192 Points)
Replied 17 June 2019

Yes ITC allowed in your case...

vishal (na) (175 Points)
Replied 17 June 2019

thanks but if it is used proportionately for business and personal purpose say 50-50% for both then in that case 50% itc would be available

Aslam Mansury (59 Points)
Replied 17 June 2019

no you can not claim itc

Aditi (Articles) (169 Points)
Replied 17 June 2019

It is safe not to claim ITC in this case.

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vishal (na) (175 Points)
Replied 17 June 2019

can you please explain the reason for itc not available because I am not talking out of section ,sec 17(5) allows itc on vehicle purchased for transportation of goods so please explain why itc will not be available?

Twinkle Kihhan (64 Points)
Replied 17 June 2019

@ Aditi @ vishal In my opinion too ineligible in terms of 17(5). Although your point is valid if it is used for transportation of goods ITC should be eligible. But it cannot be clearly brought out as to how the activa is used in transportation of goods.

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