om sarma (Independent Accountant) (37 Points)
10 December 2018
Abhay
(Employee)
(122 Points)
Replied 10 December 2018
When you purchase and use it in business ITC is allowed. If you gift these to employees and value of gift if less than 50,000 no GST applicable and the GST paid will be lapsed.
Ruchira
(Article)
(208 Points)
Replied 10 December 2018
As per Section 17(5) of CGST ACT, ITC is not available for Motor Vehicles and other Conveyance apart from when they are used for :-
(a) for transporting of goods.
(b) For making following taxable supplies
1) futher supplying such vehicle or conveyance or
2) Transportation of passengers or
3) imparting training on driving , navigating, flying such vehicle or coveyance
Here, since you are buying motor vehicle for your employees and will be sometimes used for delivery of goods and marketing you are not eligible to claim ITC on such purchase of Motor Vehicle.
om sarma
(Independent Accountant)
(37 Points)
Replied 10 December 2018
CAclubindia
