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ITC claim on motor vehicle

Mahesh Balanthimugaru (Article Assistant) (85 Points)

23 October 2018

One of my friends bought motor cars ,two wheelers and rented it for a 'tours and travel' company and receiving rent based on agreement between the company. Now my query is how to claim ITC paid on motor cars,two wheelers purchased???

pls help...

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8 Replies

hitesh banshilal porwal (article) (49 Points)
Replied 23 October 2018

you avail the gst credit because it's not covered under block credit which is mention in section 17.

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Mahesh Balanthimugaru (Article Assistant) (85 Points)
Replied 23 October 2018

need opinion on method of availing ITC... Shall I take it as capital goods and appropriate over a period of 60 months??

vikas kaushik (student) (49 Points)
Replied 23 October 2018

same doubt here can anybody help us

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 23 October 2018

@ Mahesh.,

The Car is given "Tours and Travells" company then You can claim ITC for the purchase of Car... And You can take the ITC in single take...

But, What about the "TWO WHEELER"...?

Mahesh Balanthimugaru (Article Assistant) (85 Points)
Replied 23 October 2018

two wheeler too rented to same company

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 23 October 2018

As per my view.,

It's very different. Bcoz, Except two wheeler we can get Commercial purpose with registration... But, Two Wheeler...?!

1 Like

raj kamal singh (Auditor) (528 Points)
Replied 24 October 2018

The company is not running its own business of tour &travel,but it is merely giving it on rent.So,no ITC is available,be it either 2/3/4 wheeler vehicle