Taxation Consultant
1823 Points
Joined October 2010
Rohit Tibrewal Student & Senior Accountant Different type of business but that motor vehicle used for transportation of goods its eligible for Different type of business but that motor vehicle used for transportation of goods its eligible for ITC.
Here , if my motor vehicle is used for transportation of goods then its a GTA. RIGHT?
and if im a GTA then also im not allowed to take itc for purchase of my vehicles.
Firstly As per 17 (5)
(a) motor vehicles for transportation of persons having approved seating
capacity of not more than thirteen persons (including the driver), except
when they are used for making the following taxable supplies, namely:—
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used––
(i) for making the following taxable supplies, namely:—
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods
THeres no mentioning of transportation of goods for motor vehicles.
and Secondly as per notification
if GTA charges @ 5 % they cannot avail itc
and if they go for @ 12 % fwd charge , as per sec 17(5) they cannot avail itc for their motor vehicles.
PLEASE CORRECT ME IF IM WRONG