No ITC Allowed on Demo Vehicles Retained by Car Dealers for Workshop Use | AAR
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 9 August, 2023
Latest from Taxmann
Case Details: Authority for Advance Rulings, Telangana Sai Service (P.) Ltd., In re - [2023] 153 taxmann.com 231 (AAR-TELANGANA)
Judiciary and Counsel Details
-
- S.V. Kasi Visweswara Rao & Sahil Inamdar, Member
Facts of the Case
The applicant-automobile dealer required demo vehicles which would be registered and used for demonstration and test drive for a period of two years or 40,000 kms whichever would be earlier. It filed an application for advance ruling to determine whether ITC would be allowed to applicant or not.
AAR Held
The Authority for Advance Ruling noted that as per Section 17(5) of the CGST Act, 2017, ITC would not be allowed on purchase of motor vehicles for transportation of persons unless purchased for further supply of such motor vehicles.
Therefore, it was held that if applicant would make further supply of demo vehicle, it would be eligible for ITC but in case the applicant would retain vehicle for its workshop as replacement vehicle as mentioned in sales policy of car manufacturer, it shall not be eligible for ITC as there would be no further supply.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
