Transfer of vehicle under lease to GTA

please clarify about input on purchase of vehicle
Replies (5)
Quick Summary
This discussion clarifies the rules around claiming Input Tax Credit (ITC) when purchasing vehicles for leasing to a Goods Transport Agency (GTA). Generally, ITC on vehicle purchases is restricted, but exceptions exist for businesses involved in transportation. The availability of ITC depends on the vehicle's purpose and seating capacity, particularly if it's designed for transporting goods.

Hi Shivanna!

As a general rule ITC on purchase on vehicles is not allowed with exceptions for those who are in transportation business etc. Please specify the purpose and business.

Thanks 

CA Aanchal Aggarwal

Vehicle purchase for transport Business and to be leased to GTA URD
Which vehicle & seating capacity of vehicle.

If it is a vehicle designed for transportation of goods then ITC available

Thank you

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