Tyres purchased ITC clime?

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Dear sir
My clint was doing Civil works and electrical works he have 4 wheeler vehicles and tractors , so he purchased tyres for that vehicles, so ITC eligible ?
Replies (1)

To determine if your client is eligible for Input Tax Credit (ITC) on tyres purchased for their 4-wheeler vehicles and tractors used for civil and electrical works, let's break it down: ITC Eligibility -

 *Usage for Business*: If the vehicles and tractors are used for business purposes related to civil and electrical works, ITC on tyres might be eligible. -

 *Direct Nexus*: There should be a direct nexus between the input (tyres) and the output (civil and electrical works). Possible Scenarios -

 *Vehicles for Business Use*: If the 4-wheelers are used for business purposes like transportation of personnel, goods, or equipment, ITC on tyres might be eligible. -

 *Tractors for Business Use*: If the tractors are used for business purposes like construction or transportation of goods, ITC on tyres might be eligible. Blocks on ITC -

 *Motor Vehicles*: ITC is blocked for motor vehicles with seating capacity of ≤ 13 persons (including driver), unless used for specified purposes like transportation of goods or providing services like renting or transportation of passengers. -

*Exceptions*: If the vehicles are used for transportation of goods or for specified services, ITC might be eligible. Recommendations -

 *Verify Business Use*: Ensure that the vehicles and tractors are used for business purposes related to civil and electrical works. -

*Maintain Records*: Keep records of vehicle usage, invoices, and other supporting documents to substantiate ITC claims. - 

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