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Repairs and maintainence expenses on vehicle

Ronak Agarwal (Student CS) (34 Points)

16 November 2017

CAN I CHARGE THE EXPENSE ON MOTOR VEHICLE FOR USE OF BUSINESS IN PL ACCOUNT OF FULL AMOUNT I.E (TAXABLE AMT + GST CAHRGES) ??

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7 Replies

Arindam (r&d) (73 Points)
Replied 16 November 2017

only repair maintenance will charge the PL Account rest tax amount will be charged as input tax account.

Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 16 November 2017

GST charges are not expense in this case. you can take ITC of gst paid.

RAJA P M ("Do the Right Thing...!!!") (127453 Points)
Replied 16 November 2017

Yes... I agreed to above said both replies.

You can take ITC for the service bill and Basic amount to PandL the Tax amount to Duties & Taxes head...

Ronak Agarwal (Student CS) (34 Points)
Replied 17 November 2017

thank you all...

itc is not allowed on motor vehicles but wil it be allowed for its repairs and maintaienece?

Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 17 November 2017

As per sec.17(5) - 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; So, of your vehicle is falling in the stated exception, you can claim ITC.

Ronak Agarwal (Student CS) (34 Points)
Replied 17 November 2017

THANKS BUT CAN I CLAIM ITS REPAIRS EXPENSES IN PL AND ITC AMOUNT ALSO IF USED IN OTHER BUSINESS?

Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 17 November 2017

Assuming you are using motor vehicle for transportation of goods in furtherance of your business, you can claim gst paid on its repair as ITC.

Further, you should charge repair to Profit and Loss A/c with gross amount (excluding gst)

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