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Motor vehicle

07 October 2017

if owner buy a car from company name is ITC available and in service parts ITC available and insurence in these third point is ITC eligible pls mention

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15 Replies

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 07 October 2017

if your gstn no is mentioned you can claim ITC

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RAJA P M ("Do the Right Thing...!!!") (127817 Points)
Replied 07 October 2017

It's in your business then you can avail ITC for above said expenses and purchased the car...

Ajay Prajapati (512 Points)
Replied 07 October 2017

this car use for personal but buy from company name and gst numbet

RAJA P M ("Do the Right Thing...!!!") (127817 Points)
Replied 07 October 2017

No need...
ITC can't available for own use...

Ajay Prajapati (512 Points)
Replied 07 October 2017

and in insurance and spare parts expense pls metion respectivaly pls

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Suraj Sah Ronit (22 Points)
Replied 07 October 2017

YOU can claim ITC.
if your company name and gstin mentioned in bill and also ITC in spare and insurance.

Suraj Sah Ronit (22 Points)
Replied 07 October 2017

YOU can claim ITC.
if your company name and gstin mentioned in bill and also ITC in spare and insurance.

pradeep kumar (245 Points)
Replied 07 October 2017

motor vehicle can't get itc

Suraj Sah Ronit (22 Points)
Replied 07 October 2017

sorry for the past post Mr. pradeep kumar is right no ITC in motor vehicle.

Ajay Prajapati (512 Points)
Replied 07 October 2017

what about insurance and spare parts ?

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Naveen Garg (121 Points)
Replied 07 October 2017

itc on purchase of motor vechicle not available hwever expenses incurred on it like repair and maintanance are allowed.

however
in following conditions itc will be available for even for purchase
such vechile being purchase for transporation of goods or pessengers

Naveen Garg (121 Points)
Replied 07 October 2017

[5] Notwithstanding anything contained in sub-section [1] of Section 16 and subsection [1] of Section 18, input tax credit shall not be available in respect of the following, namely:-

[a] motor vehicles and other conveyances except when they are used--

[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-

[i] food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;

[ii] membership of a club, health and fitness centre;

[iii] rent-a-cab, life insurance and health insurance except where--

[A] the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or

[B] such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply; and

[iv] travel benefits extended to employees on vacation such as leave or home travel concession;

[c] works contract services when supplied for construction of an immovable property [other than plant and machinery] except where it is an input service for further supply of works contract service;

[d] goods or services or both received by a taxable person for construction of an immovable property [other than plant or machinery] on his own account including when such goods or services or both are used in the course or furtherance of business.

Chandrasekhar Kutty (CA) (30 Points)
Replied 09 October 2017

Input on motor vehicle is ineligible as per section 17(5) of the CGST act and all related inputs for the expenses if vehicle used for personal purpose also stands reversed.

Ashish M (Chartered Accountant) (2731 Points)
Replied 09 October 2017

As per Sec.17(5), ITC "in respect of" Motor vehicles is not available. the words 'in respect of' covers all the related expenses incurred in relation to the motor vehicles, may it be lease or repair or maintenance.