Download Branding Posters
English Poster
Scroll down for Hindi Poster
Clarification on Input Tax Credit for Demo Vehicles under GST
Demo vehicles, purchased for trial runs and demonstrations to potential buyers, are considered as capital assets in the dealer's books.
The circular clarifies that ITC is available for demo vehicles if they are used for promoting the sale of similar vehicles, classifying them as being used for "further supply" of such vehicles.
However, if demo vehicles are used for non-sale purposes (e.g., employee transport), ITC will not be available.
ITC is also subject to certain conditions, such as non-claiming of depreciation on the tax component under the Income Tax Act.
Taxupdate Code: 401
Tax Update: Clarification on Input Tax Credit for Demo Vehicles under GST
You need to subscribe to service to start downloading posters
without PG logo, PG watermark and without word 'Sample',
Charges Rs. 1799 per year instead of Rs. 2400/-.
SubscribeWallet Balance is Rs. 529
Buy Using Wallet(Pl note for non-subscribers first payment towards wallet is Rs. 300.)
And share on Social Media
Layman Language Tax Updates
This is an Interpretation Tax Updates Posters section. These posters will be tax updates in layman language. It will talk about implications of above tax update. But please remember how law operates. Interpretation can be different for different people and may change over the period.
English Poster
Scroll down for Hindi Poster
Clarification on Input Tax Credit for Demo Vehicles under GST
Demo vehicles, purchased for trial runs and demonstrations to potential buyers, are considered as capital assets in the dealer's books.
The circular clarifies that ITC is available for demo vehicles if they are used for promoting the sale of similar vehicles, classifying them as being used for "further supply" of such vehicles.
However, if demo vehicles are used for non-sale purposes (e.g., employee transport), ITC will not be available.
ITC is also subject to certain conditions, such as non-claiming of depreciation on the tax component under the Income Tax Act.
Disclaimer: This is an interpretation of law in layman language. Please refer to the actual law.
Taxupdate Code: 401
Tax Update: Clarification on Input Tax Credit for Demo Vehicles under GST
You need to subscribe to service to start downloading posters
without PG logo, PG watermark and without word 'Sample',
Charges Rs. 1799 per year instead of Rs. 2400/-.
SubscribeBuy this Single Poster for Rs.29 .
PayOnce you make payment, kindly send Tax update as 401 and your email id on whatsapp on
9136667325.
And share on Social Media
हिन्दी पोस्टर
जल्द आ रहा है
Taxupdate Code: 401
Tax Update: Clarification on Input Tax Credit for Demo Vehicles under GST
You need to subscribe to service to start downloading posters
without PG logo, PG watermark and without word 'Sample',
Charges Rs. 1799 per year instead of Rs. 2400/-.
SubscribeBuy this Single Poster for Rs.29 .
PayOnce you make payment, kindly send Tax update as 401 and your email id on whatsapp on
9136667325.
And share on Social Media
