Authorised car dealers...

"The applicant is entitled to claim input tax credit charged and paid on inward supply of car which are used for demonstration purpose and supplied further after a specified time period," the AAR said.

Registered automobile dealers can claim input tax credit (ITC) on cars that are used for demonstration to potential customers, commonly known as demo cars, the West Bengal bench of the GST Authority for Advance Ruling (AAR) has ruled.

Landmark Cars East Pvt Ltd, an authorised agent of Mercedes Benz, had filed an application before the bench seeking a ruling on various taxation aspect of demo car.

"The applicant is entitled to claim input tax credit charged and paid on inward supply of car which are used for demonstration purpose and supplied further after a specified time period," the AAR said.

This ruling was in response to a question on whether the applicant is entitled to claim ITC charged and paid on inward supply of car from Mercedes Benz India that are used for demonstration purpose to the potential customer interested in buying Mercedes Benz Car.

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.

AAR ruling Landmark Cars East Pvt Ltd GST Authority Mercedes Benz authorised car dealers demo cars input tax credit taxation aspect West Bengal bench input tax credit GST Authority Mercedes Benz potential customers AAR ruling authorised car dealers demo cars AAR

Authorised car dealers can claim input tax credit on demo cars: AAR