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Itc on vehicle

Jyoti Narang (Kkk) (1204 Points)

03 February 2021

if bike is purchased for business purpose ie for wholesale of medicines business then itc is allowed on it or not

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13 Replies

Prakash Khaladkar (2 Points)
Replied 03 February 2021

. Allowed

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 03 February 2021

Not allowed.
As per sec 17(5), no ITC allowed for vehicles having seating capacity below 10.

2 Like

Jyoti Narang (Kkk) (1204 Points)
Replied 04 February 2021

As per law sec17(5) its not allowed but practically its allowed.Am I right?

Manoj Kumar (4 Points)
Replied 04 February 2021

Ofcourse itc allowed ..if bike is for business purpose.

Jyoti Narang (Kkk) (1204 Points)
Replied 04 February 2021

If its allowed then for a partnership firm the vehicle is to be registered in the name of firm or partner

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 04 February 2021

How it's allow

Jyoti Narang (Kkk) (1204 Points)
Replied 04 February 2021

Plz guide me as its urgent

sunny surve (..) (67 Points)
Replied 06 February 2021

Dear it's not allowed

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 06 February 2021

Not allowed in any condition as act does not permit.

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 06 February 2021

Not allowed in any condition as act does not permit.

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CA. Heet Shah (Tax Consultant & Practitioner) (6180 Points)
Replied 09 February 2021

Originally posted by : Jyoti Narang
	As per law sec17(5) its not allowed but practically its allowed.Am I right?

Strict Interpretation of Law shall be done.

CA. Heet Shah (Tax Consultant & Practitioner) (6180 Points)
Replied 09 February 2021

Originally posted by : Jyoti Narang
	As per law sec17(5) its not allowed but practically its allowed.Am I right?

Strict Interpretation of Law shall be done in these case so reading the provision under 17(5) restricts ITC on Motor vehicle used for transportation of passenger and Not the Motor vehicle used for transportation of Goods. In your case you shall capitalise the Bike and claim ITC.