Input Tax Credit on demo and test drive vehicles – Advance Rulings put industry in confusion!

by | Apr 29, 2021 | Articles

NITYA Tax Associates is proud to present their recent write-up in the ‘Article’ series on trending indirect tax issues. A gist of the next article in the series is as under:

Article 61 – “Input Tax Credit on demo and test drive vehicles – Advance Rulings put industry in confusion!”

Promotion is a vital aspect of any business. In Automobile Industry, demo and test drive vehicles are a prominent tool for effecting sales. It is an accepted industry practice that car manufacturers require car dealers to purchase demo and test drive vehicles, so that customers can have look and feel of purchase they are going to make. The issue of availability of Input Tax Credit on demo cars has been a matter of dispute, even after four years of GST regime. Contrary advance rulings on the issue have put taxpayers in further dilemma.

Through this article, our Partner, Mr. Deepak Suneja, Managing Associate, Ms. Neha Jain and Executive, Ms. Simran Arora have tried to highlight the issue revolving around availability of ITC on demo and test drive vehicles.

Please click on the below link to read our latest article titled Input Tax Credit on demo and test drive vehicles – Advance Rulings put industry in confusion! on the issue.

Input Tax Credit on demo and test drive vehicles – Advance Rulings put industry in confusion!

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