Purchase bike
aman goyal (125 Points)
31 March 2018i m proprietor of my firm i want to purchase a bike. pls advise me if i purchase bike on firm name than i take input tax credit of bike or not.
Aman goel
aman goyal (125 Points)
31 March 2018
Rahul Prajapati
(Student)
(2282 Points)
Replied 31 March 2018
As a General, ITC is not available for motor vehicles
Exceptions to ITC on motor vehicles
(i) for making the following taxable supplies, namely:—
(A) further supply of such vehicles; or
For example, a car dealer purchases a car for Rs.50 lakh plus 14 lakh GST (ignoring cess calculations). The same car was later sold for 70 lakhs along with Rs.19.60 lakh GST. Since he is a dealer, he can claim ITC of 14 lakhs and pay only Rs.5.60 lakh (19.60 – 14).
(B) transportation of passengers; or
For example, Happy Tours purchased a bus for inter-city transport of passengers. ITC is available.
(C) imparting training on driving, flying, navigating such vehicles or conveyances;
A driving school purchases a car to give training to students. The school can claim ITC on the GST paid on the car.
(ii) for transportation of goods;
ITC will be allowed on motor vehicles (and other conveyances) used to transport goods from one place to another.
Dhruv Pancholi
(Ca)
(137 Points)
Replied 31 March 2018
Kiritsinh Dabhi
(4 Points)
Replied 01 April 2018
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India