If I have taken a new pickup for my business which is a business selling animal feed, will I get an input tax credit for the pickup and an input tax credit for the expenses incurred for the pickup?
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Quick Summary
This discussion clarifies the eligibility for Input Tax Credit (ITC) on a new pickup vehicle purchased for a business that sells animal feed. Provided the sale of animal feed is a taxable supply, you can indeed claim ITC on the vehicle itself and associated expenses. This is in accordance with Section 17(5) of the Cost Act, 2017, for vehicles used in the transportation of own goods for commercial purposes.
Yes. under section 17 (5) of cost act , 2017 , can claim itc on purchase of vehicle for transportation of own goods fir commercial purposes provided the outward supply of selling animal feed should be taxable supply .