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Can a company claim ITC on repairs and purchase of tyres of cars ?

25 July 2018

company has purchased a motor c
ar and availed services for repairs. Can the company claim input tax credit on services. Car is registered in company's name.

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9 Replies

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 25 July 2018

Yes... You can take ITC as using for your business.... u/s 17(5).
ITC on vehicle repair and maintenance is allowed only if vehicle is used for business purpose. tyre replacement also comes under this category.

2 Like

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CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 25 July 2018

It is better not to take such ITC, because they will amend the law in which it will be specifically disallowed.

1 Like

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 25 July 2018

But yes if it is used for business purpose as said by CA Sunil Kumar, then it will be allowed.

1 Like

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 27 July 2018

No you cannot As it's under Section 17(5)
ITC shall not be available in RESPECT OF
the following:

1. Motor vehicle and other conveyance

kindly not specifically The Word "in Respect of ™ means anything related to Vehicle like repair & insurance Etc
And moreover further it's specified the condition on which the ITC is available ....
(i) for making the following taxable nsupplies, namely:—
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles
or conveyances;
(ii) for transportation of goods;

1 Like

Rajeev Tanwar (Accountant) (24 Points)
Replied 21 February 2019

sir we have purchase bike tyre can i input claim for GST.????

Bike registered on self But bill raise for company name.

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 25 February 2019

NO.......................................

NAGHENA (STUDENT) (8 Points)
Replied 07 March 2019

Sir can we take input tax credit on business trip i mean trip conducted on official purpose and also we have purchased tyres for business purpose in the name of company name. Can we claim Input tax credit on it.