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Motor Vehicle Credit

Khan & Associates (73 Points)

26 November 2018

If i am purchasing a car for Business marketing purpose only, can i take credit of Motor Vehicle Purchase invoice

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Hitesh (Student) (3549 Points)
Replied 26 November 2018

Notwithstanding anything that sub-section (1) of section 16 and subsection (1) of section 18 contains, ITC will not be available in respect of the following, namely:

motor vehicles and other conveyances apart from when they are used–

for transporting the goods; or

for making the following taxable supplies, namely:

further supplying such vehicles or conveyances; or

transporting the passengers; or

imparting training on driving, navigating, flying such vehicles or conveyances;

If you are using motor vehicle for the above mentioned purposes then credit is available else credit is blocked