Restriction on Input Tax Credit-Motor Vehicles-Section 17(5)(a)
Section
17(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1)
of section
18,
input tax credit shall
not
be available in
respect
of the following, namely:—
(a) motor vehicles and other conveyances except when they are used ––
(i) for making the following taxable supplies, namely: —
(A)
further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C)
imparting training on
driving, flying, navigating
such vehicles or
conveyances;
(ii) for transportation of goods;
In
clause (a) section 17(5) of the
Act , restriction has been imposed on input Tax credit relating to motor vehicle
,it means that tax credit of ‘input’ and ‘input service’ both will be
restricted.
RESTRICTION OF INPUT TAX CREDIT-Section 17(5)(c) of CGST ACT
“Section 17 (5) :- Notwithstanding
anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available
in respect
of the following namely:
.
.
.
.
.
(c ) works contract
services (WCS) when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for
further supply of works contract service;
(d) goods or services or both received
by a taxable person for construction
of an immovable property (other than plant or machinery) on his own account including when such
goods or services or both are used in the course or furtherance of business.”
Now question arise whether a works contractor can avail input tax
credit for the tax paid on it’s inward supply of goods (i.e. input) or services
or it is restricted as per section 17(5) (c) & (d) of the CGST Act,2017?
Extension of due date filing ITR and TAR
*CBDT further extends due* dt for filing of IT Returns & audit reports from *15th Oct,2018 to 31st Oct, 2018* for all assessees liable to file ITRs for AY 2018-19 by 30.09.2018,after considering representations from stakeholders. Liability to pay interest u/s234A of ITAct will remain.
*Source- Income Tax Twitter handle-https://twitter.com/IncomeTaxIndia/status/1049278032157048832?s=19*
*Source- Income Tax Twitter handle-https://twitter.com/IncomeTaxIndia/status/1049278032157048832?s=19*
Can Input Tax Credit of process loss/waste of Input be taken?
Section 17(5) of the Central Goods and Service Tax Act 2017,
says that notwithstanding anything contained in section 16(1) or section 18(1),
input tax credit shall not be available for certain inputs or input services.
Clause (h) of the said sub-section talk about the input tax
credit not available on “goods lost, stolen,
destroyed, written off or disposed of by way of gift or free samples”
Now question arise that whether
input tax credit on inputs which has been wasted or lost during manufacturing
process or during the production can be said that “goods lost or destroyed and
input tax credit would not be available because of section 17(5) (h) of the Act.
As per section 16(1) of the Act very registered person shall be entitled to take input tax credit on any
supply of goods or services or both provided such goods or services is used or
intended to be used in the course or
furtherance of business and such amount of credit is credit to the
electronic credit ledger.
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