Vehicle purchased

I am planning to buy a delivery van in the name of my firm. I am a wholesale supplier of medicines, and I will use this van to supply medicines to my clients. can I take ITC in this case. what various points should I keep in mind in this regard.
T A Khan
Replies (4)
Quick Summary
A medicine wholesale supplier is enquiring about claiming Input Tax Credit (ITC) on a new delivery van purchased for client supplies. The general rule states that ITC is not available for motor vehicles used for transporting persons with a seating capacity of up to thirteen. However, for the transportation of goods, ITC is generally permissible. Further clarification on specific conditions may be needed.

Yes you can claim
Thanks

For transportation of Goods can avail Input Credit.

As per section 17(5)(a) Input Credit on purchase of  Motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver) shall not be available.

 

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