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Itc on car purchased for business purpose

Mrinal jain (10 Points)

08 March 2018

Sir,

Is it possible to ITC on car purchased for business purpose???

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8 Replies

Srinivas Pyata (543 Points)
Replied 08 March 2018

itc not available for motor vehicles and other conveyances except when they are used(means for following purpose it is allowed)--

[i] for making the following taxable supplies, namely:-

[A] further supply of such vehicles or conveyances ; or

[B] transportation of passengers; or

[C] imparting training on driving, flying, navigating such vehicles or conveyances;

[ii] for transportation of goods;

[b] the following supply of goods or services or both-

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Aashish Sachdeva (839 Points)
Replied 08 March 2018

please clarify your business

Kolusu venkata satyanarayana (Asst.Manager) (56 Points)
Replied 08 March 2018

we are a manufacturing, using vehicles for conveyance of labour and vehicles are using by management and staff, then the

Srinivas Pyata (543 Points)
Replied 08 March 2018

The following also not eligible
[iv] travel benefits extended to employees on vacation such as leave or home travel concession

Kolusu venkata satyanarayana (Asst.Manager) (56 Points)
Replied 08 March 2018

only daily working people, nothing but IT cab- pick up and drop

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umamaheshwaran (articled clerk) (52 Points)
Replied 08 March 2018

Dear Sir,

what about the ITC on repairs & maintenance for the same vehicle which we grouped under Capital Asset .i.e we are not utilising the ITC on purchase of CAR , then what about the eligibity regarding on ITC on Repairs & Maintanence for the Vehicle.

Aashish Sachdeva (839 Points)
Replied 08 March 2018

As per my personal opinion, No ITC on purchase of motor vehicles but on repair and maintenance ITC available. I personally found that no restriction on ITC on repair and maintenance.

It is personal opinion if anybody have different view then views are welcome. Thanks. Disclaimer: it is not Professional Advice.

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Srinivas Pyata (543 Points)
Replied 08 March 2018

ITC allowed on repairs and maintenance, There is no restriction on that

please refer the following there is tweets by GOI about ITC on repairs
https://www.tipsntricksguru.com/2017/09/25/gst-itc-on-repairmaintenanceservice-bills-of-car/

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