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car repair and car insurance
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....ar repair and car insurance<br> Query (Issue) Started By: - satbir singhwahi Dated:- 14-8-2018 Last Reply Date:- 7-9-2018 Goods and Services Tax - GST<br>Got 14 Replies<br>GST<br>whether itc on car repair and car insurance available to a business concern Reply By Rajagopalan Ranganathan: The Reply: Sir, According to Section 16 (1) of CGST Act, 2017 "every registered person shall, subject t....
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....o such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. According to Section 17 (5) (a) o....
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....f CGST Act, 2017 "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 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) tran....
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....sportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (ii) for transportation of goods. Therefore if the car is used in the course or furtherance of his business itc is available . Otherwise it is not available. Reply By satbir singhwahi: The Reply: Thanks Sir Reply By Himansu Sekhar: The Reply: Yes, the ITC is not allowed Reply....
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.... By satbir singhwahi: The Reply: Sir pls give if any circular Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: The advice given by Shri Renganathan is sufficient. Reply By satbir singhwahi: The Reply: Sir Is there any circular recently that says car repair and car insurance not available.Pls guide. Reply By Rajagopalan Ranganathan: The Reply: Sir, Circular will be issued only to clariffy a....
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....ny ambiguity arising out of legal provisions. Here the law is very clear and hence no circular is required to be issued. As far as my knowledge goes there is no circular issued by CBIC on this matter. Reply By Himansu Sekhar: The Reply: If the car is for business purpose itc is available.I amend my view. Reply By Ganeshan Kalyani: The Reply: In my view if the person is in the business of plyin....
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....g car then credit on the repair of car is eligible. Reply By Ramaswamy S: The Reply: Credit is restricted as explained by Mr Rajagopalan. Even if the car is used in the business, ITC is allowed only if it is used in the business of supplies of such vehicles (sale of cars) or for transportation of passengers (rent a cab) or for driver training. For any other business it is not allowed Regards ....
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.... S.Ramaswamy Reply By Ganeshan Kalyani: The Reply: The word used in the section 17(5) regarding motor vehicle is "in respect of" which means only motor vehicle and the expense of repair. If the work would have to "in relation to" then I agree the credit is not eligible. Reply By Ramaswamy S: The Reply: Thank you Mr Ganeshan for the clarification. If the repair and insuranc....
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....e service is paid by the business concern for business purpose it is allowed, If paid by the business concern for personal consumption not allowed in terms of Section 17(5) (g). Regards S.Ramaswamy Reply By alok saxena: The Reply: Sir How it clear that car use in person or Business work .once car use only pick & drop to resi to work place and rest time use in Business work and holiday and wee....
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....kly off day use in personal work. than what status. Reply By Ramaswamy S: The Reply: After the amendment in Section 17 of CGST Act effective 29th Aug 2018, no credit allowed on repair and insurance of car even if used for business with exception as specified under revised section 17(5). Regards S.Ramaswamy<br> Discussion Forum - Knowledge Sharing ....