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Input credit on capital goods

DEBJIT DEY (Finance Professional) (21 Points)

15 September 2018

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

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5 Replies

om singh (20 Points)
Replied 15 September 2018

Of course input can be availed on capital goods purchased but cannot take benefits of depreciation on such input taken..

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Kunal Pansari (Accountant) (1037 Points)
Replied 16 September 2018

What type of car? And for what purpose is it being used?

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 16 September 2018

No on car its itc block U/s 17(5), so cant claim ITC

Vatsla Alagh (1545 Points)
Replied 16 September 2018

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;

Vinod Babu (24196 Points)
Replied 16 September 2018

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.