Hello,
Can we avail Input Credit for GST spent on Car servicing, maintenance, car insurance, etc. ?
I know it is not valid when we purchase a new car, but, these are on-going expenses for the maintenance of motor vehicle.
6 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 01 October 2017
If you are using the Car to your business then you can claim ITC. Otherwise no need...
K. MURALIDHARAN
(CFO)
(22 Points)
Replied 01 October 2017
No. you can not avail ITC. Read Section 17 (5) - g
Input Credit on purchase of Motor car also not allowed on the same basis.
NITIN MANGLA
(ACCOUNTANT)
(278 Points)
Replied 01 October 2017
if we used purchased vehicle for company use not personal use then we avail itc on all exp. against those vehicle.
like if you using those car for your own pick and drop or for personal use then u not avail itc.
but if you using those vehicle for your business puprpose like material in or out then u take a commercial vehicle no. and take itc.
like if you using those car for your own pick and drop or for personal use then u not avail itc.
but if you using those vehicle for your business puprpose like material in or out then u take a commercial vehicle no. and take itc.
Nitin Jain
(28 Points)
Replied 01 October 2017
Thanks for your kind responses.
Can we expense the car in the accounts of an unregistered partnership ?
The car is being used for meeting clients, pick up and drop from home to office, etc.
NITIN MANGLA
(ACCOUNTANT)
(278 Points)
Replied 01 October 2017
its your choice but if you hire a car service from unregistered dealer then u have to pay rcm on car hire charges on behalf of unregistered dealer.
like if you use a car hire service from unregistered dealer appox. amount 10000 in m/o july then you have to book those amount in your system under rcm act and you pay tax as per gst rules in m/o july return but next month you avail those rcm as an itc in your books but rcm procedure is same.
if you know about better then join my agency page on facebook. my consultancy agency name is swastik consultancy
like if you use a car hire service from unregistered dealer appox. amount 10000 in m/o july then you have to book those amount in your system under rcm act and you pay tax as per gst rules in m/o july return but next month you avail those rcm as an itc in your books but rcm procedure is same.
if you know about better then join my agency page on facebook. my consultancy agency name is swastik consultancy
Recent Topics
- FORM 10 IEA IN Revised return
- ITC Eligibility on GTA
- Top Highest Tax-Paying Celebrities: FY 2023-24
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
Related Threads
CAclubindia
