can avail ITC for insurance paid for vehicles
Tushar Gupta (26 Points)
08 June 2018
can I avail ITC for insurance paid for vehicles of firm for business purposes
2 Replies
Vinod Babu
(24196 Points)
Replied 08 June 2018
Clause (a) to section 17 (5 ) , declares motor vehicles and other conveyances as blocked credit, subject to certain exceptions. Accordingly no ITC is available in respect of motor vehicles
If you are into the business of renting / leasing car/ Conveyence / Training ----> Yes can claim ITC input credit on both car and Insurance premium.
However if you are in some other business, where the car is used for furtherance of business... you cannot claim ITC on Car only, but ITC on insurance & other accessories is not blocked.
Therefore there is no restriction on ITC towrds Insurance paid .so you can claim ITC on insurance premium..
If you are into the business of renting / leasing car/ Conveyence / Training ----> Yes can claim ITC input credit on both car and Insurance premium.
However if you are in some other business, where the car is used for furtherance of business... you cannot claim ITC on Car only, but ITC on insurance & other accessories is not blocked.
Therefore there is no restriction on ITC towrds Insurance paid .so you can claim ITC on insurance premium..
Sundararajan S
(Final Student of ICAI)
(1764 Points)
Replied 09 June 2018
But, rationally speaking,when ITC on the vehicle the main component is not available, ITC on repairs, insurance would not also be available. Clarification in this regard expected
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