TaxTMI 
TaxTMI 
Sir
Whether ITC allowed on fork lifter used for moving finished goods with in factory.
ITC availibility on fork lifter
26 Feb 2020 
7 Replies 
5191 Views Asked by
Input tax credit on forklifts permitted for goods movement within factory; capital goods definition and amendment allow special purpose vehicles.
ITC is available on forklifts used to move finished goods within a factory because they qualify as capital goods when capitalised in the claimant's books and used in the course of business. The deletion of the phrase "other conveyance" from the ITC exclusion means dumpers, work-trucks, fork-lift trucks and other special purpose motor vehicles are not automatically barred from ITC, whereas the block on passenger-transport motor vehicles continues to apply. (AI Summary)
ITC is available on forklifts used to move finished goods within a factory because they qualify as capital goods when capitalised in the claimant's books and used in the course of business. The deletion of the phrase "other conveyance" from the ITC exclusion means dumpers, work-trucks, fork-lift trucks and other special purpose motor vehicles are not automatically barred from ITC, whereas the block on passenger-transport motor vehicles continues to apply. (AI Summary)