[Turbanator]

Originally Posted by stanjohn123

I have my own hospital, but how do I purchase things in hospital name if I am purchasing it online ? Till now everything including broadband connection has been taken in my personal name but in hospital address.

Check if the GST number is in your name or the Hospital. In case of proprietorship companies, GST should be in your name. If your Hospital is a separate entity having a GST number, You can open a business account with Amazon in hospital name and also ask Airtel to change billing name add GST number on your invoices.

Same way, If you travel for work in Business class, do claim GST on the Airline tickets as well, it's a substantial amount

[AJ-got-BHP]

This is Really Sad News if it is to be true as GST upto the extent of 28% is applicable in many electrical spare parts of cars including Batteries. Have had recent experiences where the Input Credit of that 28% was a big savior.

The annual tabulation of "Motor Car Expenses" is a substantial sum in most of the organizations which includes Sole Proprietorships and the GST Input makes a considerable sum too.

However, on the contrary this would benefit the mass of the unauthorized workshops who had run out of some business due to the implication of GST since they voluntarily preferred being out of the GST purview.

[sreejith.j]

I have a question from my friend who runs a manufacturing unit.

They run a registered partnership firm. It has 3 passenger cars used by its partners, and 2 LCV goods vehicles.

Can they take ITC of expenses related to the 3 passenger cars?

Can they take ITC of expenses related to the 2 LCV Goods vehicles ?

When they sells the passenger cars, do they have to pay any GST ?

When they sells the Goods Vehicles, do they have to pay any GST ?

Seems like even auditors are not giving a clear answer here and blindly not allowing any input credit

[Schneller]

Originally Posted by Swapnil4585

Generally, take no ITC on purchase of cars (and of spare parts), and take depreciation only on the purchase value of car (excluding the indirect tax element) in Income Tax, is a set practice.

By indirect tax, do you mean registration charges or GST + Cess.

AFAIK, we can capitalise the cost of acquisition of an asset, which should include Ex showroom + Registration + logistics or any other charges

[AutoNoob]

Originally Posted by Schneller

By indirect tax, do you mean registration charges or GST + Cess.

AFAIK, we can capitalise the cost of acquisition of an asset, which should include Ex showroom + Registration + logistics or any other charges

IIRC, if an organization is claiming ITC for vehicle, insurance etc. that portion can't be put as depreciation (Capital), rest can be.

Logically also, only the amount actually spent to acquire capital asset can be put under depreciation.

[Schneller]

Originally Posted by AutoNoob

IIRC, if an organization is claiming ITC for vehicle, insurance etc. that portion can't be put as depreciation (Capital), rest can be.

Logically also, only the amount actually spent to acquire capital asset can be put under depreciation.

That’s my understanding too. But the post i quoted says not to claim ITC and also not capitalise indirect taxes.

My understanding is if u do not claim ITC, Everything except insurance should be capitalised. Insurance (1 year policy) should be written off