ITC on Purchase of automobile in GST era
Can the anti profiteering experts please share with me how in the case of car purchase profiteering could work and is there a benchmark discount for auto industry that consumer should demand as input tax credit. I would be very grateful.
Sridhar Mohan more
Sridhar Mohan more
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Profiteering is subjective in nature and can be detected by the external auditors. If detected it will affect the credibility of the business. Unfortunately today only "fame" and "profit" matters and nobody questions how? Thus even if it is detected it doesn't matter in todays environment. Example of profiteering is Coal allocated for power plant means to produce power sold directly in the open market to earn profit more than that would have earned by generating and selling power using the same quantity of coal. If this is not happening then it is called market correction. We know how low valued shared are bought in BSE/NSE and sold later at a higher price thus correcting the valuation. The catch here is ones ability to locate the undervalued assets in the market. If you recall Kotak Mahendra initially started the business by buying Maruti cars in bulk say 10 in numbers and then leased to individuals. He has successfully identified the market needs and acted upon it and became a successful entrepreneur. Unless one is using the vehicle for business purpose one cannot claim input tax credit. Thanks more
Apr 17
How a Govt having some sense could charge Rs5000 GST on Med assurance, they have increased assurance charge from Rs 12000 to 29000; Is there any sense; It is looting common persons/pensioners like me. It is difficult to pay for assurance money yearly. Retired, poor teacher- Kantharaj more
Apr 16
Unless you use the car as a commercial vehicle to render taxable tourist or such service, you cannot claim input credit on it. more
Apr 16
