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ITC for new vehicle

Dhirendra (Accountant) (27 Points)

19 July 2017

can we avail ITC from purchase of new car in our firm?

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11 Replies

RAMESH D MODI (Proprietor) (4869 Points)
Replied 19 July 2017

yes.....

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Deepak Patel (STUDENT) (45 Points)
Replied 19 July 2017

No you can not take input of car

CA Rashmi Gandhi (Chartered Accountant) (86318 Points)
Replied 19 July 2017

No ITC available for motor vehicle until same is used for futherance of business.

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shine jose (article assisstant) (27 Points)
Replied 19 July 2017

You can take input tax credit since this is specifically excluded via blocked credit

shine jose (article assisstant) (27 Points)
Replied 19 July 2017

you can not

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shine jose (article assisstant) (27 Points)
Replied 19 July 2017

you can not

jayesh bhoir (8 Points)
Replied 20 July 2017

Rashami Madam wording is true and exactly to the point.

RAMESH POLINENI (ca) (352 Points)
Replied 20 July 2017

we have three optionsedit

1) if that registered person has capitalised that car he can take that amount of tax as input credit and balance amount has to be capitalised and he should charge the depreciation on that balance amount

2) He can also capitalised that amount without taking of inputtax credit and he should charge the depreciation on the total value of the car

3) He can take the input credit and he should take that amount of car as an expenditure in his books of the accounts

WE SHOULD TAKE THE DECITION DEPENDING ON THE PURPOSE THE CAR IC USING

CA Suresh Jain (Practice) (135 Points)
Replied 20 July 2017

Itc on vehicle not allowed until used for commercial purpose.

Kaushik Deepak (KD) (Officer Accountant) (1136 Points)
Replied 20 July 2017

ITC is not available for motor vehicles and conveyances except when: the vehicle is used for the supply of other vehicles or conveyances the rule shall not apply if the vehicle is used for transportation of passengers the vehicle is used for imparting training on driving, flying, navigating such vehicle or conveyances

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jayesh bhoir (8 Points)
Replied 21 July 2017

Basically indirect taxes are paid by consumer not by customer.... so at the time of chain of supply stop at the consumer end ... the ultimate consumer can't availed credit of any tax.