Registered vehicle sellers can declare enter tax credit score (ITC) on automobiles which might be used for demonstration to potential prospects, generally referred to as demo automobiles, the West Bengal bench of the GST Authority for Advance Ruling (AAR) has dominated.
Landmark Vehicles East Pvt Ltd, an authorised agent of Mercedes Benz, had filed an utility earlier than the bench in search of a ruling on numerous taxation facet of demo automotive.
“The applicant is entitled to say enter tax credit score charged and paid on inward provide of automotive that are used for demonstration goal and provided additional after a specified time interval,” the AAR stated.
This ruling was in response to a query on whether or not the applicant is entitled to say ITC charged and paid on inward provide of automotive from Mercedes Benz India which might be used for demonstration goal to the potential buyer involved in shopping for Mercedes Benz Automobile.
