TaxTMI 
TaxTMI 
TaxTMI 
Input tax credit
X X X X Extracts X X X X
X X X X Extracts X X X X
....nput tax credit<br> Query (Issue) Started By: - DK AGGARWAL Dated:- 3-10-2017 Last Reply Date:- 7-10-2017 Goods and Services Tax - GST<br>Got 13 Replies<br>GST<br>Sir Please confirm if ITC is allowed on Car repair expenses like change of tyres, change of battery etc when the car is registered in name of company and supplier and receiver are both registered in GST. Is it allowed on normal repair/m....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aintenance also when Car is sent to gurage for change of Oil, filters etc 2---Is ITC allowed on Diwali gift articles like Toaster, Mixi, sweet boxes etc given to customers as sales promotion. D K Aggarwal Reply By KASTURI SETHI: The Reply: Not allowed in both cases. Reply By PAWAN KUMAR: The Reply: In first case, since you are not using car in your outward taxable supplies hence all expenses....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... related to the said car is ineligible. In second case, ITC is not applicable on items given as free or sample. Reply By Ganeshan Kalyani: The Reply: I agree with the views of Sri Kasturi Sir. Thanks. Reply By MARIAPPAN GOVINDARAJAN: The Reply: I also endorse the views of Shri Kasthuri. Reply By Himansu Sekhar: The Reply: 1. Repair and maintenance charges of cars is allowed as ITC. 2. ITC....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on the goods used for gifts is not allowed as the supplies are without considerations. Reply By KASTURI SETHI: The Reply: Dear Sir, When motor vehicle is excluded from ITC as elaborated by Sh.Pawan Kumar Ji, how ITC on repair is admissible ? Pl. Throw more light on the issue for enrichment of my knowledge. Reply By Himansu Sekhar: The Reply: Sir, the cars are used for furtherance of business.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... The vehicles are restricted for the ITC. But the services like repairs and maintenance are not restricted under sec. 17(5). Also I have come across many tweets clarifying vsuch position. Reply By Himansu Sekhar: The Reply: I shall email the tweets to you. Under CCR rules, rule 2(l) specifically restricted such services. Now it is furtherance of business. In my opinion there should no restricti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on for taking credit if sec. 17(5) does not hinder. Reply By KASTURI SETHI: The Reply: In this situation ITC is not allowed even it is in the course of or for furtherance of business. When any goods are in the exclusion clause, the phrase "In the course of or for furtherance of business" has no relevance or legal force. Here is a question of interpretation. Reply By Himansu Sekhar: Th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Reply: Even before 1.4.11, the input services for civil activities were allowed as credit whereas the input credit on such civil activities were not allowed. Also steel structural credit from 2009 was not eligible, but input services for erection of strtucturals were allowed up to 1.4.11 when rules spercificaslly denied the credit. In the instant situation input service credit is not deniable a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s section does not prohibits. It is my view. With humility I also submit that difference of opinion exists in tax matters. Reply By JSW CEMENT LIMITED: The Reply: The Relevant portion of Section 17(5) is reproduced below as under: (5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....following, namely:- (a) motor vehicles and other conveyances except when they are used-- (i) for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (ii) for transportation of goods; If we go through the starting line of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... it says that notwithstanding anything contained in Sub-section 1 of Section 16....... input tax credit shall not be allowed in respect of the following...... Section 16(1) speaks about availability of input tax credit on goods or services or both used for furtherance of business. Section 17(5) starts with the word notwithstanding anything contained in subsection (1) of Section 16, which means t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat irrespective anything contained in Subsection 1 of Section 16, input tax credit shall not be allowed in respect of motor vehicles, these input tax credit may be towards purchase of motor vehicle or any service rendered in respect of such motor vehicles. As such, Shri Kasturiji's opinion is very much correct to the extent that input tax credit on repair and maintenance of motor vehicle is ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....not allowed. Reply By Himansu Sekhar: The Reply: Sir, it will lead to the denial of credit on renting not motor vehicles. Reply By JSW CEMENT LIMITED: The Reply: It will lead to denial of input tax credit in respect of motor vehicle be it suply of services or supply of goods<br> Discussion Forum - Knowledge Sharing ....