Authorised car dealers can
claim input tax credit on demo cars
Registered
automobile dealers can claim input tax credit (ITC) on cars that are used for
demonstration to potential customers, commonly known as demo cars, the West
Bengal bench of the GST Authority for Advance Ruling (AAR) has ruled.
Landmark
Cars East Pvt Ltd, an authorised agent of Mercedes Benz, had filed an
application before the bench seeking a ruling on various taxation aspect of
demo car.
"The
applicant is entitled to claim input tax credit charged and paid on inward
supply of car which are used for demonstration purpose and supplied further
after a specified time period," the AAR said.
This
ruling was in response to a question on whether the applicant is entitled to
claim ITC charged and paid on inward supply of car from Mercedes Benz India
that are used for demonstration purpose to the potential customer interested in
buying Mercedes Benz Car.
www.economictimes.indiatimes.com dt. 08-05-2024