Input tax credit on new car purchased
ASHWINI KUMAR
(Querist) 31 January 2019
This query is : Resolved
If I purchased an 9 seater car worth Rs 1000000 exclusive of GST. I have paid Rs. 1280000 for the same, which is inclusive of GST of Rs 280000. I gave the car to a government department (say Income tax dept./ or PWD) for it's officer's conveyance & travelling with a consideration of Rs. 30000 per month for a period of 2 years under a contract. The driver will be provided by me, however the cost of fuel will be borne by the service recipient. Now I want to know whether the ITC of Rs 280000, which I have paid on purchase of car will be available or not? i.e. whether this business will be treated as carrying of passengers or not as per the exceptions to the block list of ITC on moter vehicle with less than or equal to the 13 seats.
P. Venu
(Expert) 01 February 2019
The issue requires professional consultation.
