Input gst for purchase of car

ITC / Input 443 views 12 replies

Dear All,

I have a query about purchase of Car by my Managing Director. Can we claim Input GST for that purchase. It is completely for his Conveyance to office and will be used for office purpose only.

Thanks n Regards

Sridevi 

Replies (12)

Madam,

Let me know one thing, is car is registered in the name of director or in the name of company ???

 

thanks

Block credit under section 17(5)....so no ITC.... Capitalise it in cost of car

In the name of Director

Ok, Got it

Madam, 

If Car is registered in the name of director, it will not be treated as purchases made by a company.

if purachse itself is not qualifying, then what is the question of taking ITC on that ?????

So, Company is debarred from neither capitalise the car in books nor allowed to take ITC on such purchase made by Director.

 

Thanks.

 

@ Vamsi...itc is denied under section 17 (5) as block credit on motor vehicle... If car is in the name of company then he also can't avail ITC of gst.... If car is in name of directors but payment has been made from company account na... So then treated it as loan

Respected Divakar Sir 

Thanks for your prompt reply,

Inorder to take ITC on any goods, first and foremost condition is, it should be qualified to be a input tax as per 2(62) of CGST act.
Once it is qualified to be a Input tax under aforesaid section, then we have to check the eligibility of ITC as per the provisions of Chapter V of CGST act (Input tax credit). 

In this case first of all, whatever the transaction happend between Director and car seller is outof perview of Company books. So it will be input tax to Director not to Company.

Let me explain with small examples:

Exapmle 1). Comapny purchase a car which is in the name of copmany, and invoice given in the name of company. Seller of car collected 10,000 Rs. as IGST. in this case this 10,000 Rs. will be treated as Input tax by virtue of 2(26), but the same shall not be eligible to take credit as ITC by virue of 17(5).

in this case company shall disclose this purchase in GSTR2, and put the same under Bloched credit.

Example 2). Director purschased car, registered in the name of Director itself (present case). first of all it is not the purchase made by the company. so it will not be treated as Input tax as per 2(26).

in this case company no need to show the same in their GST2 at all.

 

I think now you understood where our opinions are disagreed.

 

Thanks to all

It is understood that when directors entered its own transaction then why company goona make enter in their books of accounts.... No relevance of this question...

Respected Divakar Sir,

Am also in the same view. Question itself irrelevence.

 

Thanks

 

 

@ vamsi.... First thing i am not sirπŸ˜€πŸ˜€πŸ˜€and u r right and excellent elaborate the provision... Gud luck broπŸ˜€πŸ˜€πŸ˜€
@ Sridevi mam.... Itc available or not questions arises only in the case of when bill is in ur GSTIN.... Otherwise itc availing question not arises... πŸ˜€πŸ˜€πŸ˜€

Thanks you divakar...


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