Circular 231/25/2024 - Central Tax

Date: September 11, 2024

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Subject

Clarification on availability of input tax credit in respect of demo vehicles

Content

The demo vehicles are the vehicles which the authorised dealers for sale of motor vehicles are required to maintain at their sales outlet as per dealership norms and are used for providing trial run and for demonstrating features of the vehicle to the potential buyers. These vehicles are purchased by the authorised dealers from the vehicle manufacturers against tax invoices and are typically refle…

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