Hy All Can we take ITC of insurance of commercial vehicle mainly used in supplies of taxable good.
Replies (6)
Quick Summary
This discussion clarifies whether Input Tax Credit (ITC) can be claimed on the insurance of commercial vehicles used for supplying taxable goods. Generally, ITC is available for vehicles primarily used for transporting goods, such as trucks. However, it's not allowed for passenger vehicles like cars used for goods transport. Ensure you review Section 17(5) of the relevant legislation for specific conditions and note that ITC is permissible for associated expenses like repairs and tyres on commercial vehicles where ITC has been claimed.
You should note that... vehicle is only for the purpose of transport of goods... eg : Truck If you are using passenger vehichle like Car for transport of goods... then ITC not allowed.