ITC on Motor cars not available
There are taxpayers who claim ITC on their motor vehicles (cars and bikes) thinking if they buy in their business name, credit is available.Please bear in mind as per section 17(5) clause (a) motor vehicles for the transportation of passengers (cars & bikes) less than 13 seater including driver ITC will not be available unless if(a) you are a dealer of such motor vehicles or(b) you are in the business of transportation of passengers(c) you are a driving schoolAny motor vehicles used for transportation of passengers more than 13 seater, there is no restriction on claiming ITC.Goods Motor vehicle also there is no restriction on availing ITC.Very important, if the credit of motor vehicle is blocked as per above provisions, then all ITC on related expenses like repairs & maintenance,…