Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

ITC available or not.?

RAHUL (Student) (206 Points)

01 June 2020

One partnership firm bought a van for the transportation of its goods from one place to another. This van is registered in a partner's name. so can that firm take the ITC of that Van.?

Reply
Follow
Share

8 Replies

Sahil Shah (26 Points)
Replied 01 June 2020

Since we saw in your previous question that Vehicle purchased in name of partner can be used for partnership firm's business and can be shown as firm's asset, its itc will be available as it is used for goods transport.

Upgrade to CAclubindia Pro. Subscribe Now!

Rajkumar Patel (602 Points)
Replied 01 June 2020

Sorry, sahil sir, we can't say that partner assets used in business is firm's asset.

RAHUL (Student) (206 Points)
Replied 01 June 2020

Firm's name

Shivam RC (Student) (23683 Points)
Replied 01 June 2020

@ RAHUL Sir,

As per my view Input Tax Credit ( ITC ) on Van which is being used for transportation of Goods can be claimed. I guess the Invoice contains the GSTIN of your Partnership Firm.

The Van may be registered in the name of Partner with the RTO ( since Partnership Firm is not a separate legal entity ), but only ensure that the Invoice is issued in the Firm's name with the GSTIN. You can also claim Depreciation ( as per Section 32 of the Income Tax Act 1961 ) on the Van under W.D.V Method.

2 Like

RAHUL (Student) (206 Points)
Replied 02 June 2020

But is there any need to register the vehicle as a taxi and use yellow number plates..?

Upgrade to CAclubindia Pro. Subscribe Now!

Shivam RC (Student) (23683 Points)
Replied 02 June 2020

It's a Commercial Vehicle Sir. The Van is being used for transportation of goods. Hence it needs to be registered as a Commercial Vehicle and accordingly Yellow Number plate will be applicable.

1 Like