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Itc reversal on capital goods

ITC / Input 191 views 4 replies

S.Mahendrakumar

ICWA Inter Student & working as an Acco

38 Points Joined February 2013

Dear sir,

One of my client purchase motor vehicle for his business during the financial year 2017-18 at that time we take ITC from Motor vehicle. Now the dealer wants to sale the vehicle due to vehicle damage and loss occur. What is the procedure to reverse the ITC. Please guide me

Thanks & Regards

S.Mahendrakumar

Replies (4)

CA. Ankit Singla

In Practice

79 Points Joined August 2011

you cannot take itc on motor vehicle at first place, so you should reverse it and deposit with int

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shailendra shukla

Bhopal

1741 Points Joined February 2017

CA. Ankit singla...... there are certain exceptions to that rule......

lallan

faridabad

113 Points Joined April 2011

You may have to pay full amount of itc taken by you with interest as itc taken in past. You are not eligible to take itc on car was purchased for business.