The Commercial Taxes Department, Govt. of Tamil Nadu, on January 13, 2025, notified regarding the clarification on availability of input tax credit in respect of demo vehicles.
The following has been stated namely:-
• Demo vehicles are maintained by authorized dealers for trial runs and demonstrations, purchased as capital assets, and later sold at a written down value with applicable taxes
• It states that the availability of input tax credit on demo vehicles, which are motor vehicles for transportation of passengers having approved seating capacity of not more than 13 persons (including the driver), in terms of clause(a) of section 17(5) of Tamil Nadu Goods & Services Tax Act, 2Ol7 (hereinafter referred to as the .TNGST Act-).
Detailed notification is attached below.
[Circular no. 1/2025]
