https://www.taxtmi.com/circulars?id=71203 Input tax credit on demo vehicles is available where authorised dealers use them for test drives and demonstrations that promote their own further supply of similar motor vehicles. Credit is unavailable where vehicles are used for staff or management transport, or where a dealer merely provides marketing or facilitation services for a manufacturer without selling vehicles on its own account. Capitalisation does not affect otherwise eligible credit, but credit is barred where depreciation is claimed on the tax component. Subsequent sale of a capitalised demo vehicle attracts the required amount or tax. en-us Mon, 13 Jan 2025 00:00:00 +0530 Tue, 08 Sep 2026 18:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=71203 Input tax credit on demo vehicles is available where authorised dealers use them for test drives and demonstrations that promote their own further supply of similar motor vehicles. Credit is unavailable where vehicles are used for staff or management transport, or where a dealer merely provides marketing or facilitation services for a manufacturer without selling vehicles on its own account. Capitalisation does not affect otherwise eligible credit, but credit is barred where depreciation is claimed on the tax component. Subsequent sale of a capitalised demo vehicle attracts the required amount or tax. Circulars GST - States Mon, 13 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/circulars?id=71203