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VEHICLE PURCHASE


VINOD KUMAR   20 February 2020

VINOD KUMAR

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Sir

We are registered as a wholesale dealer of Crockery and Gift Products. we have recently purchased seltos New Car for our Managing Director. Can we claim ITC for the purchase & what will be the amount for taking Asset in our books on the gross value or including GST

Please reply

Thank u Vinod

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Pratik Ranjan   20 February 2020

Pratik Ranjan

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ITC of GST on Vehicle (personal use or Transport) can only be claimed by Goods Transport Agency or Frim dealing in such Vehicle (dealers) , not in any other case.

under section 17 of CGST ACT. ITC of goods can only be claimed to the extent of goods or services used for business purposes.😯

so, in nut shell you can't...😊

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VINOD KUMAR   20 February 2020

VINOD KUMAR

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Thank U sir   

What about Asset Accounting ?

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Pratik Ranjan   20 February 2020

Pratik Ranjan

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Capitalise Total amount paid for CAR(including gst) and Insurance (both term insurance and third party insurance )


As per Accounting Standard you have to capitalise total amount incurred to bring the asset to its present location and condition , so that it can be used as intended by management.🙂

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Spurto Consultancy Services (Consultant)     20 February 2020

Spurto Consultancy Services
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No, the gst credit paid on purchase of car cannot be claimed, unless you are in the business of buying selling cars or other businesses specified in section 17(5)

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