Input credit on capital goods

ITC / Input 543 views 5 replies

Can a trader avail input tax credit on capital goods like a car purchased.

Replies (5)
Of course input can be availed on capital goods purchased but cannot take benefits of depreciation on such input taken..
What type of car? And for what purpose is it being used?
No on car its itc block U/s 17(5), so cant claim ITC
As per section 17(5), input tax credit shall not be available in respect of the following, namely:-

[a] motor vehicles and other conveyances except when they are used--

[i] for making the following taxable supplies, 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;
As per Sec 17(5) no ITC is available for motor vehicle except used for business, imparting training for driving or for transportation of passenger &goods. So no ITC available.


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