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ITC Available On Motor Vechile

Anshul Belwal (78 Points)

16 March 2019

I purchasing Motor Cycle & Car purchased of Business purposes. I can avail ITC?

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4 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 16 March 2019

Input tax credit shall not be available in respect of the following:

Amended Sec. 17(5)(a) w.e.f. 01.02.2019

motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:—

(A) further supply of such motor vehicles; or

(B) transportation of passengers; or

(C) imparting training on driving such motor vehicles;

It means:

ITC relating to any vehicle with approved seating capacity of more than 13 persons (including driver) is eligible.

Further, ITC is allowed for vehicles, when they are used to make the following taxable supplies:

further supply of such motor vehicles
transportation of passengers
imparting training on driving such motor vehicles

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Latest Movie&Funs (154 Points)
Replied 16 March 2019

goods transport vehicle purchase for business purposes. can I avail ITC for that

RUPINI KOTHAMASU (CA-JOB) (502 Points)
Replied 16 March 2019

In case if your business doesn't involve in the
. further supply of such motor vehicles

transportation of passengers

imparting training on driving such motor vehicles

Then it can't claim ITC