Case LawKER/10/2018
A.M Motors ., In re
- Court:
- Authority for Advance Ruling
- Bench:
- Kerala
- Date:
- September 26, 2018
- Type:
- Advance Ruling
Subject
ITC is available on Demo Cars
Input Tax Credit
Summary
In the motor vehicle industry, demonstration vehicle is an indispensable tool for promotion of sales by providing trial run to customers. It is a business requirement that motor car dealer shall compulsorily acquire the demonstration vehicles from pr…
Judgement
In the motor vehicle industry, demonstration vehicle is an indispensable tool for promotion of sales by providing trial run to customers. It is a business requirement that motor car dealer shall compulsorily acquire the demonstration vehicles from principal supplier. These purchases are capitalized in the books of accounts excluding tax components. These demo cars are used for demonstration purpos…