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ITC on motorbike

Arunachalam (Proprietor) (186 Points)

20 June 2018

I think of buying a motorbike to carry the products from godown to my shop. Can I take inputs from the purchase of motorbike. I can assure it will exclusively be used for movings goods from to shop and not for my personal use. If I can take input, would there be any limit on purchase of vehicle? Please advise.

Thanks in advance.

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14 Replies

Jatin (Accountant) (3479 Points)
Replied 20 June 2018

No, you can't take ITC on Motorbike in any condition

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Arunachalam (Proprietor) (186 Points)
Replied 20 June 2018

Why so? It will only be used for furtherence of my business. Or shall I buy Tata Ace?

Bibek jaiswal (Accountant) (528 Points)
Replied 20 June 2018

yes ITC will be available on Tata Ace if it is used for furtherence of business but no ITC will be available on Motorbike

1 Like

Arunachalam (Proprietor) (186 Points)
Replied 20 June 2018

Is there any specific reason on why motorbike's input is not allowed? Because the goods can be carried on bike itself?

Sundararajan S (Final Student of ICAI) (1764 Points)
Replied 20 June 2018

Sir if the vehicle is exclusively for carrying goods, then it doesn't matter whether it's two wheeler or tata ace. yes you can take full ITC. for safer side, you can remove the pillion seat and prove yourself if you wish to do a very safe play.

2 Like

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Vinod Babu (24191 Points)
Replied 20 June 2018

"you can remove the pillion seat and prove yourself if you wish to do a very safe play"
What an idea sir ji.. 😊
Mr sundarajan sir... good idea.

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 20 June 2018

Dear Arunachalam , .. Actually you will find hard to statisfy the officer that u R using bike for delivering goods,.. so dont get into such litigation its better to, not to take ITC

Yes , if u buy Tata Ace , U can avail ITC , without giving any further clarification

1 Like

Vinod Babu (24191 Points)
Replied 20 June 2018

Agree with Pankaj sir.
Yes no itc on motor bike.
But for Tata ace you can take ITC.

Arunachalam (Proprietor) (186 Points)
Replied 20 June 2018

Thanks so much everyone for your advice.

Sundararajan S (Final Student of ICAI) (1764 Points)
Replied 20 June 2018

Sir it's not that no ITC on motor bike. The purpose is the fulcrum. If motor bike used exclusively for carrying goods, then 100% allowed. Yes if pillion seat is removed and provision is made to load goods say like TVS XL or M80, then definitely credit is eligible. The law just says motor vehicle. Just shared what I understand. Credit at your discretion

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Y GOPI REDDY (GREAT POLITICAL LEADER) (378 Points)
Replied 20 June 2018

If really using for business and be able to explain department if questioned.
Take ITC as it is a your right to take.
No can do any thing even Arun Jaitley also

1 Like

Chandravijay Shah (CA) (53 Points)
Replied 21 June 2018

Tata Ace is meant to carry goods only, not passengers, whereas the use of Motor Bike is to carry passengers only. If you claim ITC on Motor Bike, you may end up with Litigation. Btw, how much is the Amount of ITC on Motor Bike?

2 Like

Arunachalam (Proprietor) (186 Points)
Replied 22 June 2018

Thanks for your advice. I was just thinking of purchasing motorbike for transporting goods from godown to shop, not sure of the amount of ITC on motorbike.

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 22 June 2018

ITC available if used for transportation of goods. Just maintain some records to prove the distance travelled by bike every day for business purpose and from where to where in a register. Total KM travelled as per register and as per bike's display should more or less match.Beside you may generate e-way bill with bike number even if e-way bill is not required. Removing pillion is also a great idea I got reading the discussion.

So with these things you can definitely go ahead for claiming ITC.