Nod for enter tax credit score on demo automobiles, Auto News, ET Auto

Nod for enter tax credit score on demo automobiles, Auto News, ET Auto

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 Earlier, Jharkhand, Maharashtra and Kerala benches had also allowed car dealers to claim input tax credit in respect of demo cars.
Earlier, Jharkhand, Maharashtra and Kerala benches had additionally allowed automobile sellers to say enter tax credit score in respect of demo automobiles.

Mumbai: In some excellent news for authorised sellers of motor automobiles, the GST Authority for Advance Rulings (AAR) has been constant in its method that enter tax credit score could be claimed on buy of demo autos. This may be set off towards the products and providers tax (GST) legal responsibility.

The latest ruling has been given by the West Bengal bench of the GST-AAR within the case of Toplink Motorcar, an authorised supplier for Hyundai Motor. Along with buy of motor autos which have been bought to clients, the supplier additionally bought others that have been used as demo automobiles for demonstration and to allow potential clients to do a trial run.

The price of such autos was capitalised and never proven as stock-in-trade. The AAR bench noticed that demo autos are put up on the market after the demonstration/take a look at drive interval, as stipulated by the automobile producer. It went on to carry that enter tax credit score on buy of demo automobiles can’t be denied merely as a result of such autos are capitalised or as a result of they could be later bought at a value decrease than their procurement worth.

Earlier, Jharkhand, Maharashtra and Kerala benches had additionally allowed automobile sellers to say enter tax credit score in respect of demo automobiles.

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