Input credit on hp goods
GUHAN (Practicing CA & CS ) (321 Points)
06 October 2014GUHAN (Practicing CA & CS ) (321 Points)
06 October 2014
Harshal
(CA)
(106 Points)
Replied 06 October 2014
Dear Guhan,
You can definately claim Input tax Credit on Goods Purchased under Hypothication. Transactions under Hypothication Sysrem (Under Hire Purchase/Lease Transaction) are treated as Deemed Sales under Article 266 (29A) of Constitution of India. According to this article sale under hypothication system is deemed to be normal sales & the provisions of tax apply to it as they apply to normal sales. In such transactions buyer is the only & real owner & NBFC is just financer. So in my opinion you can definately claim Input Credit.
Regards: -
CA Harshal Pahade
Contact: - 9272344759