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ITC of repairing of vehicle

Mahesh Radadiya (Manager Account) (39 Points)

29 April 2018

personal car use in business and repairing charges invoice is make in the name of company, ITC is available or not

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15 Replies

Vaibhav DHingra (128 Points)
Replied 29 April 2018

not available

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Jagdish Akbari (Tax Consultant) (189 Points)
Replied 29 April 2018

as per 17[5] ITC not available

1 Like

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 29 April 2018

Yes Thats for sure that cant avail ITC, but ur GSTN is mention bill so plz show it in 3B , under table 4, row A(5) all other ITC, & at the same time Reverse it showing in Row D(1) u/s 17(5)

1 Like

CA KANJ GOEL (OWNER) (1378 Points)
Replied 29 April 2018

agreed with pankaj ITC available on repair or maintenance. ITC denied on purchase of vehicles not on repair.

1 Like

Jagdish Akbari (Tax Consultant) (189 Points)
Replied 29 April 2018

Goel ji read carefully....Allow and at the same time reverse in 3b thats what Pankaj is telling.

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 29 April 2018

No ITC is available as expenses are in nature of personal expenses. So same is ineligible u/s 17(5)

Jagdish Akbari (Tax Consultant) (189 Points)
Replied 29 April 2018

ya true Rashmi.ji..

1 Like

CA KANJ GOEL (OWNER) (1378 Points)
Replied 29 April 2018

why all of you are considering it as personal expense when the personal car used for business purpose qualifies for the business purpose itself.

Jagdish Akbari (Tax Consultant) (189 Points)
Replied 29 April 2018

As per section 17 [5] ...condition not fulfilled..only commercial vehicle used for business purpose then ITC avail.Personal Car is not commercial vehicle as per your reply.

CA KANJ GOEL (OWNER) (1378 Points)
Replied 30 April 2018

you want to say that director of the company should own commercial vehicle then only it can be claimed. I don't find it sound interpretation.

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CA KANJ GOEL (OWNER) (1378 Points)
Replied 01 May 2018

sir, you are getting confused with the input on vehicle and input on recurring expenses (repair, insurance etc). For recurring expenses no such limit is there.

Regards

Kanj Goel

CA Shanky garg (Practicing Chartered Accountant) (217 Points)
Replied 01 May 2018

Proportional ITC is available in this case subject to- GSTN is mentioned on invoice i.e. Invoice is in the name of business.

Plus, other requirements are there like Calculation & reversal of proportionate credit and some other adjustments r to be in books for the purpose of GST. Since it is used for both Personal and business purpose, only partial ITC will be available.

Rakesh Kapoor (Proprietor) (56 Points)
Replied 01 May 2018

If you are a proprietor or partner and you use vehicle for business purposes then ITC is available on its repairs.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 01 May 2018

As Section 17(5) ,
input tax credi.t shall not be available in respect of the following,
namely:—
(a) motor vehicles and other conveyances except when they are used––
(i) for making the following taxable supplies, namely:—
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles
or conveyances;
(ii) for transportation of goods;
43 of 1961.

1. in above plz read the phrase "shall not be IN RESPECT OF" means in regard to vehicle. & below define the condition in only which he can avail ITC,

2. The phrase "Shall not Be° would have written 'May Not Be'

So in my vew No ITC can be claim