1) Do note that this benefit is available only if you are using the car for your business purposes. If you use the car for personal purposes and still want to avail tax benefits, there are legal ways for you to be able to do that. We'll touch upon some of those ways in some other video. 2) You can also avail ITC of the GST that you've paid on getting Insurance and Warranty. This will further lower your cost. 3) For those select few people whose Output Supplies attract GST Compensation Cess, they can avail the ITC of "GST Compensation Cess portion in Ex-showroom Price of Car" too. 4) You don't have to be a Company to avail these tax benefits. Even an Individual can get this benefit by purchasing the car in their own name and using it for their business.
Ek hi din me ye dusro video dekhi aakhir me muje ab subscribe karna hi pad rha h,, impressed 👍 thank you TH-cam for suggesting this second video bcoz first one i saw by searching particular video
Please bring taxation relief for salaried employees too, and it's really nice to learn about finance from you, even though I'm not from finance sector.
One question , you told hypothetically that 12L of output gst is what we get from transportation of our employees , how did you actually calculated the input gst and output gst on this and came to the value of 5L that we can save? Please explain the 5L more elaborately or pin a video of yours that does the same , thanks :)
Are bhai tum yaar magician ho Matlab ek dum inhone wakt badal di gaddi ki price badal di jazbaat badal di hamari aukaad badal di Gazab!!! Mind-blowing!!! Love this video a loooooottttt😆😆😆😆😇😇
Very nicely explained and informative video Sahij Ji. Eagerly awaiting part 3rd of this series, tax savings on Cars for Salaried persons and car loan at 2% p.a. !!! Please enlighten. Thanks a lot
@@huzaifullakhan7412 ya but most people buy fortuner for tax evasion If you compare fortuner 50 lakh price you will find more and more value for money cars
Although I am from Engineering background but the video was quite understandable for a layman.. Interesting and informative. Please make a video for salaried person as well.
Sir you always make your students well prepared for real case studies. These videos literally helps a lot in building the concepts more strong. Thank u so much sir. Keep sharing such contents.
Didn't knew that a CA has soo muchh power that he can easily save such a huge amount by playing through taxation 😁❤️hats off to your knowledge sir✨ proud to be your student💯🙌🏻
I would like to disagree. Practically I can't see any company or any business avail ITC for a fortuner. Because for availing ITC for transportation of passengers, you need to generate taxable supply i.e. you need to charge the passengers which I find little hard to find in real life
I'm a non-techincal guy but what i understood is basically, at the time of purchase actual on-road price pay krna hi padega and 51% saving IT mein mil jayegi over the years. Paisa banane k liye paisa chaiye ye suna tha, paisa bachane k liye bhi paisa chahiye. This is something new. I've been following ur videos for sometime, they're quite fascinating. Keep up the good work, and thanks for sharing the info.
It's look like amazing web series of Income Tax and GST having episodes by making interesting them after putting a twist (new question) at last of each video 🤘🤘, by our one and only Hero "CA Sahil Jain Sir".... 🙌🤘
@@akibahamedmunshi1245 jo money future mein milenge usko hmm aj he invest karre hain na to mujhe aj dekhna ke us future money ke cost kya hogi too us case mein hmm present value ka concept lagate jhan pe rate De rakha hai or annuity is your depreciation ammount
Sir requested you to provide a video on salaried person car taxation benifits with finance & without finance on TH-cam. I am desperately waiting for it sir. I am sure many more subscribers also wants the same.
Sahil jain ji please bring up the video for car saving using tax laws for SALARIED PEOPLE Please Thanks for the valuable knowledge you are sharing to all the folks...
You are simply amazing even layman can understand what you are trying to teach. I learnt so many things from you and from the bottom of my heart thank you so much sir❤
This is extremely good way of introducing concepts of taxation to a lay person, but things are not much clear but love your simplified explanation. But depreciation value and its calculation seems little fuzzy. How one is going to save that money?? Are we paying any less than actual amount or are we getting anything in repaid as it depreciates?? A complete noob.
What kind of expenses on our commercial vehicle can we claim in our buisness i.e. fuel, tyre ,service,spare, insurance and what is upper limit on that. Thank you for making such interesting content.💯
The major point that needs to be mentioned here is the corporate tax, which is applied on the vehicle if it is purchased by any entity. It is higher than the individual tax.
Wow sir. you never fail to amaze me with your knowledge, deep understanding and its application in real life scenarios. thanks for making such videos. will be eagerly waiting for your video for tax saving on cars for salaried
Sir, kindly share a video where you mentioned about the legal ways to avail tax benefits for personal purpose Car. it will be really helpful for the layman :)
I guess You cannot claim for a personal car as an employee, but you can buy a car in your companies name you could show it as transportation expense. But you must be the owner of that company i guess i am not sure if this is possible
Thank you. Your presentation is simple and very precise. I have next to zero knowledge in taxes and accounting. But this video has got me interested to learn about this subject. Thank you once again.
Its very clearly explained by GST Council that, an individual cannot claim ITC for private registered vehicle. Those cars used for business purpose called as Commercial vehicles/car. White board cars cannot attract ITC, YELLOW BOARD cars can.
As per section 17(5),if the motor vehicle capacity less than 13 passenger then you I'll not allowed to take GST Credit...and the GST credit will be blocked under section 17 (5)...You are only allowed to take Credit when you are in the business of Hiring,Plying,Transportation of passengers or training of motor vehicle (Means the Car should be used for motor Driving School,or transportation of passengers,Other than this reasons your GST credit is blocked,You can not Claim of GST paid on CAR)
Sir i just love the way you explain these concepts❤️❤️. A thought struck in my mind that can we further lower the rate by investing the amount saved ( as tax from purchase of car) and calculating the net benefit( after tax) from such investments....... I mean would it amount to indirect savings ?
Sir I am CA student and both my parents are in business, we used to file separate IT returns for both of 5lakhs approx if we want to avail depreciation benefits on car which is more precisely used for business purpose,can we file one tax return to show higher income like more than 10lakhs to claim tax benefits?
These laws have been directly taken down from british rule without much changes. Can you believe that? It also tells that our system still controlled by british govt secretly.
Vaise aaj sahi pata chala income certificate par sahi amount likhvane ka inportance pata chala varna most of log below 1lacks likhvate jo ki galat hai aur hondacity verna jaisi gadiya lekar ghumte hai❤
As claimed by Sahil Jain in the video it must be noted that you will technically NOT GET 51% or 31% off on the new car purchase due to the following reasons which have been missed in the video 1. 51% or 31% as applicable will be only reflected in the books of accounts but as per income tax act maximum percentage of depreciation per year for a Car is 15% Max 2. Keeping in mind that most business owners don’t keep their cars beyond 10 years then the total benefit that the business owner will save as per income tax act is max 26% (if car is kept for 10 years) and not 31% as claimed in the video!
Sir 1 query Suppose my friend runs a driving school. I asked him to buy a fortuner. The price was 47 lakh he deducted 39k and 728 K Now it costs him 39.5 lakh approximately what if I purchase the fortuner from him? At a price of 40 lakh
When anyone Claims ITC in GST then he will be laible to Charge GST on the Depreciated or Fair Market Value Whichever is Higher while selling it before 5 years
When you sell the car , the depreciated value after say 5 years is gonna be added to your profit , which would again increase the cost by around 15% , so over the span of 5 years n the best case scenario the max you can save is 35%. Correct me if I’m wrong.
Dear Mr. Jain, please don't mislead people just to increase yr views...My CA says only the depreciation part in yr video is correct and the GST Officer will reverse the ITC and ask one to pay 18 percent interest!!
Thanks for the video. Could you clarify the below? 1) If you are claiming ITC for supply i.e reselling the car to a third party, how can you claim depreciation as an asset on this?
Greetings sir! I hope this message finds you well. It's a humble request sir to kindly make a video comparing CA course CS course and B.Com(Hons) from SRCC. It would really help us as students to take the right decision.Thanks.
@@anupsingh4524 Kisne kaha b.com ca ke equal hai bohot difference hai...b.com kuch nahi hai. BSc in Computer Science and B.tech dono same hai kya ?? Nahi na
Thanks, Sir for the insightful video. I am a sole proprietor, and i will be using the car for my business purpose. But my business doesn't belong to the above 3 that you have mentioned. Is there anyway that i can avail ITC benefit in GST.
waiting for salaried people video and that 2% interest financing video. @sahil can we take taxation services from you ? or your students? if available please let know. thanks
Hello sir ! Watched your video, very well explained 👏👏. Sir buying a 50lakh (luxury car) and saying that this is for transportation, driving school etc.. and you will claim ITC (in GST). Will it be allowed?
If you’re not faking it and actually use the car for such business, there’s no issue in buying a car worth 1 Crore also. It’s your money. You can choose to spend it whichever way you want to.
@@TaxationWithCASahilJain Thanks for responding Sir 👍. Sir buying a 1 or 2crore car is not an issue as you said, it's my money. But saying that this car is for my staff or transporting goods doesn't seem relevant. Will ITC not be disallowed? It's my money i can claim but as per GST law is it possible
31/42 is not the depreciation rate. It is the effective rate of tax applicable on assessee, i.e. the amount of Income Tax that he is bound to save on the expense that he claims by way of depreciation.
@@TaxationWithCASahilJain Sir my father is planning to buy a Scorpio & vo GST mai bhi register hai or income 10 lakh se above hai. If we buy that Scorpio for Transportation business kya hume 31% wala profit ho sakta hai? Please reply
I like the way you explain, simple n clear. Pls answer me : What if i transport my self from my Home to office/Customer place. Would i able to get Direct GST Input ? ?
Sir, I have a doubt. If we are considering the three exception under CGST Act for taking ITC then in the first case( dealing in business of motor vehicles), the depreciation won't be allowed as the car will be considered as goods, so we won't be able to take the benefit of depreciation. Yes, In 2nd and 3rd case(transportation one and driving school one), depreciation will be allowed under Income tax act.
Correct. In case you supply cars, they will be a stock in trade for you and you can claim the “entire cost excluding gst” as revenue expenditure in Income Tax Act. No need to claim depreciation here.
@@TaxationWithCASahilJain Sir in 2nd case do we have to buy a yellow plate vechicle or can get in white plate car also we gat itc as most of the time private cars are used for transportation of passengers. Sir please reply
Hello sir, Thanks for this beautiful knowledgeable video, also I have some question you just said that if your income is less then 10Lac then don't buy the car... So I am an government employees my income se around 6.5 Lac (around 45-47 per month) and we are just planning to buy a family car total members in my house is 6, so we thinking about to buy a Toyata Innova crystal "OR" MG Hector(obviously 1 car only) on diwali so please give me your suggestions how much approx tax I can save also should I buy a car with a loan or without. Note that :- 1st I have my own house(no loan debt free), 2nd no loan currently I own, finance track record is balance 3rd not using any credit card 4th about investment I m investing in share market, PPF and RD for families saving, Sukanya Samriddhi for my daughter, and all members in my house having Medical And Life insurance and also investing in Mutual fund. No ther other business and have small amount of savings as an emergency fund Hope you get my point. Really thanks for the videos 🥳
But sir what about the provision mentioned in section 16(3) of CGST Act? Doesn't it bars a person from claiming ITC, if depreciation is also being claimed?
GST law is clear in this area.. It states that if the registered person claims depreciation on the ITC portion of the asset, then he cannot claim the ITC against GST liability. However, if the ITC is eligible to claim, then the cost of asset is straight away reduced by the ITC portion and hence no depreciation on that part can be taken to P&L.
Amazing Sahil … I think you have to make a video on explaining the no of years benefitting that 31% .. for bullet system in EMI .. where we pay lumsum at 12 month
Thanks for sharing this valuable knowledge. As mentioned in the video regarding how to get car loan of 2% by playing with taxation I am really keen to see that valuable information as i am planning to buy a new car. Looking forward to see that video. Thanks in advance
Such wonderful information But can you explain what you said at the last moments about the loan at 2%, cause i am thinking of buying a car and this information will be very helpful
Car purchase : What are the taxation benefits for consultants (supply of services)? Whether ITC is available ? What is the maximum depreciation % claim per annum ? I hope car insurance paid during the year can be claimed as an expenditure.
Hello Sahil. I am impressed the way you explained the whole tax saving on buying a new car. Can you please guide me if I would buy a car which cost around 43.5 lac being a job person how shall I avail loan on this. I am really looking forward to hearing from you soon. best regards
TCS and ITC benefit for cars & others under GST rule is nothing but a cashback or coupon thing that we claim in our routine life! It's the same thing that we experience in Online/offline shopping places like Reliance Trends. A customer buys 2000 rs worth of goods from Reliance Trends' mall. They give Free Coupon worth of 500 rs. When customer goes again for shopping in Trends, he uses same coupon for discounting new goods!!
Thanks for amazing information. Should we buy cars on HUF, will that help in saving on purchase? Assuming huf will be showing car will be used for earning by employing driver.
Very nicely explained. Will you please make a video on - Company Car lease policy for employees. Whether Car leasing policy is legal asunder ITC and how it can be used by the employees and employer.
![[TH] 2024 PMGC League | Survival Stage วันที่ 1 | PUBG MOBILE Global Championship](http://i.ytimg.com/vi/FVFT-PFwU80/mqdefault.jpg)
1) Do note that this benefit is available only if you are using the car for your business purposes. If you use the car for personal purposes and still want to avail tax benefits, there are legal ways for you to be able to do that. We'll touch upon some of those ways in some other video.
2) You can also avail ITC of the GST that you've paid on getting Insurance and Warranty. This will further lower your cost.
3) For those select few people whose Output Supplies attract GST Compensation Cess, they can avail the ITC of "GST Compensation Cess portion in Ex-showroom Price of Car" too.
4) You don't have to be a Company to avail these tax benefits. Even an Individual can get this benefit by purchasing the car in their own name and using it for their business.
Okay Sir
Apke pass konsi car hai plz tell?
Sir waiting for your next video on salaried person can save money on buying car by playing with income tax laws
Sir ye kaise pata lagega Bussiness purpose kahke tax bachake personal purpose ke liye use kar lo
Karte hi honge sab log
@@Dheerajkumar-xk2nv Business wesa hona chahiye naa jisme dept ko dikhe kii haann ye business k liye gaadi liya haiii...
I'm not a CA student but this wants to get me into finances more. Thank you sir for this video ❤️
Ek hi din me ye dusro video dekhi aakhir me muje ab subscribe karna hi pad rha h,, impressed 👍 thank you TH-cam for suggesting this second video bcoz first one i saw by searching particular video
Please bring taxation relief for salaried employees too, and it's really nice to learn about finance from you, even though I'm not from finance sector.
yes..please sahil sir please bring video on salaried employees
+1
No benefits for salaried employees
Tds
+1
One question , you told hypothetically that 12L of output gst is what we get from transportation of our employees , how did you actually calculated the input gst and output gst on this and came to the value of 5L that we can save? Please explain the 5L more elaborately or pin a video of yours that does the same , thanks :)
This series is more interesting than KGF series 😂 Level of suspense is getting increased by each video 🧐🤯
🤣🤣
😂😂😂😂
MMR doesn't apply to the individual so take 30% in place of 42%
Are bhai tum yaar magician ho
Matlab ek dum inhone wakt badal di gaddi ki price badal di jazbaat badal di hamari aukaad badal di
Gazab!!!
Mind-blowing!!!
Love this video a loooooottttt😆😆😆😆😇😇
Tb bhai, kal fortuner le rhe ho ab?
@@jasmeerkumar 😂😂😂
@@jasmeerkumar Abey Saale!
Mein toh majak kar reha tha aapne toh serious leliya
😂😂😂😂🤣🤣
@@mananmaheshwari9205 😅😅
As per section 17(5) - Transportation of passengers having approved seating capacity of more than 13 persons. Only in this case ITC Is allowed.
I read about it somewhere else 17 5 applies for ITC but not for the compensation cess they collect, which is why you get to claim if your registered.
absolutely right. ITC is allowed only seating capacity more than 13 persons( including driver)
That's why being a businessman is better as there're lots of options for tax saving
😒😒better evaluate you can make business even profitable or you can do it or not. rather than thinking about tax saving on the first hand .
Businessman also bear Losses which Salary People don't
@@siddhantrastogi591 that is the difference between an employee and an employer which is known as RISK...
Govt wants everyone to do business, not be a salaried employee! sad truth. Being an employee is being a tax payer. You can never enjoy your life.
Very nicely explained and informative video Sahij Ji. Eagerly awaiting part 3rd of this series, tax savings on Cars for Salaried persons and car loan at 2% p.a. !!! Please enlighten. Thanks a lot
🙏🏻, please share the link of car loan at 2%.
sir ji car board yello board hona jaru hai sir
Sahil is actually smart to use example of fortuner (tax evasion)😂😂😂
I think
It's tax planning not evasive
@@huzaifullakhan7412 ya but most people buy fortuner for tax evasion
If you compare fortuner 50 lakh price you will find more and more value for money cars
@@terabaap-gr4oc yes yes 🤣🤣🤣bro
tax avoidance
Although I am from Engineering background but the video was quite understandable for a layman.. Interesting and informative. Please make a video for salaried person as well.
Sir you always make your students well prepared for real case studies. These videos literally helps a lot in building the concepts more strong. Thank u so much sir. Keep sharing such contents.
Aap student ho kya inke
@@hashirkhan6743 no
Happy to learn various options available for entrepreneurs to save taxes, can we please request education on tax saving for salaried employees 🙏
Didn't knew that a CA has soo muchh power that he can easily save such a huge amount by playing through taxation 😁❤️hats off to your knowledge sir✨ proud to be your student💯🙌🏻
Tum CA's yaaar.......⚡
Kaash meh bhi CA karta...😔.
yee paltu ka engineering karr raha hu
@@nitinkapoor1369 ok ❤
I would like to disagree. Practically I can't see any company or any business avail ITC for a fortuner. Because for availing ITC for transportation of passengers, you need to generate taxable supply i.e. you need to charge the passengers which I find little hard to find in real life
@@cahimanshunarang agreed with you🤷
@@god-ui9lm iit mein padta to berozkar nahi hota aur science ka naam kharab nahi kar raha hota
I'm a non-techincal guy but what i understood is basically, at the time of purchase actual on-road price pay krna hi padega and 51% saving IT mein mil jayegi over the years. Paisa banane k liye paisa chaiye ye suna tha, paisa bachane k liye bhi paisa chahiye. This is something new.
I've been following ur videos for sometime, they're quite fascinating. Keep up the good work, and thanks for sharing the info.
It's look like amazing web series of Income Tax and GST having episodes by making interesting them after putting a twist (new question) at last of each video 🤘🤘, by our one and only Hero "CA Sahil Jain Sir".... 🙌🤘
Will wait for salaried class video on tax savings on buying cars.
Very nicely explained
As depreciation is to be claimed in future, we need to also calculate present value of tax savings from depreciation.
SFM+Tax :P Nice observation BTW
Can u please explain this??
@@akibahamedmunshi1245 jo money future mein milenge usko hmm aj he invest karre hain na to mujhe aj dekhna ke us future money ke cost kya hogi too us case mein hmm present value ka concept lagate jhan pe rate De rakha hai or annuity is your depreciation ammount
Bhai bhai 🙌
@@abhivanshbhatt5880 wor
Sir requested you to provide a video on salaried person car taxation benifits with finance & without finance on TH-cam. I am desperately waiting for it sir. I am sure many more subscribers also wants the same.
Sahil jain ji please bring up the video for car saving using tax laws for SALARIED PEOPLE Please
Thanks for the valuable knowledge you are sharing to all the folks...
You are simply amazing even layman can understand what you are trying to teach. I learnt so many things from you and from the bottom of my heart thank you so much sir❤
I have no money n my dad gave 16 lakhs to buy a kia carens, now how can I avoid tax, as I don't have income at all.. ?
Your way of explanation is really fantastic..
You explain every topics naturally.. 😇
This is extremely good way of introducing concepts of taxation to a lay person, but things are not much clear but love your simplified explanation. But depreciation value and its calculation seems little fuzzy. How one is going to save that money?? Are we paying any less than actual amount or are we getting anything in repaid as it depreciates?? A complete noob.
Saving on depreciation is for business purpose .
Depreciation expense will reduce profit in business.
Lower profit leads to lower taxes
Hence savings
But I will not buy a new car but a second car
Only if u use the car for normal businesses , you can save from dep. Not if u r a salaried employee.
Wow . U just mesmerized me
"The devil lies in the details"
This confidence comes from a long history of hard dedicated work ... Hats off to you
What kind of expenses on our commercial vehicle can we claim in our buisness i.e. fuel, tyre ,service,spare, insurance and what is upper limit on that.
Thank you for making such interesting content.💯
The major point that needs to be mentioned here is the corporate tax, which is applied on the vehicle if it is purchased by any entity. It is higher than the individual tax.
Wow sir. you never fail to amaze me with your knowledge, deep understanding and its application in real life scenarios. thanks for making such videos. will be eagerly waiting for your video for tax saving on cars for salaried
Sir, kindly share a video where you mentioned about the legal ways to avail tax benefits for personal purpose Car. it will be really helpful for the layman :)
I guess You cannot claim for a personal car as an employee, but you can buy a car in your companies name you could show it as transportation expense. But you must be the owner of that company i guess i am not sure if this is possible
Sir you always upgrade our skills, thanks alot
I saw a good mentor in you instead of a teacher..
Love you sir.
We bought Fortuner in Jan 2022 and Creta in April 2022 😂 Agar aapki video pehle aayi hoti, toh we would've saved more
Thank you. Your presentation is simple and very precise. I have next to zero knowledge in taxes and accounting. But this video has got me interested to learn about this subject. Thank you once again.
i am an engineer but still i am able to understand . Thankyou for such simple explanation
Awesome! Sir you really make great efforts to relate theoretical concepts of direct tax with practical scenarios.
Its very clearly explained by GST Council that, an individual cannot claim ITC for private registered vehicle. Those cars used for business purpose called as Commercial vehicles/car. White board cars cannot attract ITC, YELLOW BOARD cars can.
Eagerly waiting for your next video on how to save Taxes on Car for salaried ppl.
BTW Thanks Sahil for making such amazing videos. Big Fan ! :D
I just love to watch the way you hold the pen and scrutinize things. Even I am science student I love to watch your videos. ❤️❤️
Eagerly waiting for the next video Sir. Awesome explanation, I was even able to recall the section 206C(1F) of TCS.
As per section 17(5),if the motor vehicle capacity less than 13 passenger then you I'll not allowed to take GST Credit...and the GST credit will be blocked under section 17 (5)...You are only allowed to take Credit when you are in the business of Hiring,Plying,Transportation of passengers or training of motor vehicle (Means the Car should be used for motor Driving School,or transportation of passengers,Other than this reasons your GST credit is blocked,You can not Claim of GST paid on CAR)
Me bhi jain hu sarthak hai mera naam me apko 250000 lakh transfer karta hu aap mujhe lekar dedo 🙂 1 lakh apke fees ke
Krdiya na chutiyapa 😂
Lakh me kittey zero hottey hain pta h?😂 Chle gaadi kharidne
डाई लाख में कौन लेकर देगा फार्चूनर को
@@avinash-1295250,000 me to RTO bhi nahi jayega 😂
😂😂😂@@akshaysinha9650
Please make a separate video on why you shouldn't get your vehicle finananced.
Hi sahil very informative video, please make one for salaried employees.As majority of employees pay major tax.
Thanks
Really helpful video. Awaiting video on how to finance car without taking loans worth 6-8%
Sir i just love the way you explain these concepts❤️❤️.
A thought struck in my mind that can we further lower the rate by investing the amount saved ( as tax from purchase of car) and calculating the net benefit( after tax) from such investments....... I mean would it amount to indirect savings ?
Sir I am CA student and both my parents are in business, we used to file separate IT returns for both of 5lakhs approx if we want to avail depreciation benefits on car which is more precisely used for business purpose,can we file one tax return to show higher income like more than 10lakhs to claim tax benefits?
nicely discussed , every point covered . Thank you so much for giving practical exposure of this .
If we didn't have unjust laws then Chartered Accountants & Lawyers wouldn't make that much money
These laws have been directly taken down from british rule without much changes. Can you believe that? It also tells that our system still controlled by british govt secretly.
😂😂😂 salty eh ?
@@adityadwivedi7672 , do enjoy ur final days of unjust laws
Lots of love to sahil sir loved your gst and direct tax classess
Vaise aaj sahi pata chala income certificate par sahi amount likhvane ka inportance pata chala varna most of log below 1lacks likhvate jo ki galat hai aur hondacity verna jaisi gadiya lekar ghumte hai❤
As claimed by Sahil Jain in the video it must be noted that you will technically NOT GET 51% or 31% off on the new car purchase due to the following reasons which have been missed in the video
1. 51% or 31% as applicable will be only reflected in the books of accounts but as per income tax act maximum percentage of depreciation per year for a Car is 15% Max
2. Keeping in mind that most business owners don’t keep their cars beyond 10 years then the total benefit that the business owner will save as per income tax act is max 26% (if car is kept for 10 years) and not 31% as claimed in the video!
Sir 1 query
Suppose my friend runs a driving school. I asked him to buy a fortuner. The price was 47 lakh he deducted 39k and 728 K
Now it costs him 39.5 lakh approximately what if I purchase the fortuner from him?
At a price of 40 lakh
When anyone Claims ITC in GST then he will be laible to Charge GST on the Depreciated or Fair Market Value Whichever is Higher while selling it before 5 years
You can purchase after 5 years.. otherwise he will need to reverse the proportionate ITC claimed
12 se 16 lakh ki gaadi hogi fortuner, 45 lakh rate badake...phir tax mai kam Karo 🙄..government is doing burden on public.
When you sell the car , the depreciated value after say 5 years is gonna be added to your profit , which would again increase the cost by around 15% , so over the span of 5 years n the best case scenario the max you can save is 35%. Correct me if I’m wrong.
Depreciated value of car is not added to profit
@@sureshwadkar1961 I am sure it is , what I meant to say was , the leftover value after depreciation, you might've understood wrong.
Dear Mr. Jain, please don't mislead people just to increase yr views...My CA says only the depreciation part in yr video is correct and the GST Officer will reverse the ITC and ask one to pay 18 percent interest!!
Absolutely correct. Report this video and also ask your friends or other viewers
Good Evening sir, Do you have a full course recorded video of income Tax & Gst available for purchase??
and we Love the way you teach ❤️❤️🥰
sir agli video jaldi lao...although koi classes nahi li but aapki he ye youtube videos dekh ke he samajh aa gyi poori scheme😁
Thanks for the video. Could you clarify the below? 1) If you are claiming ITC for supply i.e reselling the car to a third party, how can you claim depreciation as an asset on this?
Greetings sir! I hope this message finds you well. It's a humble request sir to kindly make a video comparing CA course CS course and B.Com(Hons) from SRCC. It would really help us as students to take the right decision.Thanks.
CUET ke bharose ho😂
Ofcourse SRCC
B. Com is b. Com bro, how can you compare with professional qualifications. Bcom and a professional qualification is a bomb combo
@@surajitdas7695 bcom from top 3 5 College is better than doing CA👍 specially for those who has weak personality and communication. Not comparing
@@anupsingh4524 Kisne kaha b.com ca ke equal hai bohot difference hai...b.com kuch nahi hai.
BSc in Computer Science and B.tech dono same hai kya ?? Nahi na
Thanks, Sir for the insightful video. I am a sole proprietor, and i will be using the car for my business purpose. But my business doesn't belong to the above 3 that you have mentioned.
Is there anyway that i can avail ITC benefit in GST.
Nice video sir.. Plz indivisual k liye video banye. Jisa mai car pe tax save ho sake
waiting for salaried people video and that 2% interest financing video. @sahil can we take taxation services from you ? or your students? if available please let know. thanks
Hello sir ! Watched your video, very well explained 👏👏. Sir buying a 50lakh (luxury car) and saying that this is for transportation, driving school etc.. and you will claim ITC (in GST). Will it be allowed?
If you’re not faking it and actually use the car for such business, there’s no issue in buying a car worth 1 Crore also. It’s your money. You can choose to spend it whichever way you want to.
@@TaxationWithCASahilJain Thanks for responding Sir 👍. Sir buying a 1 or 2crore car is not an issue as you said, it's my money. But saying that this car is for my staff or transporting goods doesn't seem relevant. Will ITC not be disallowed? It's my money i can claim but as per GST law is it possible
Eager to know how this interest of 2% comes up ?
Yes
Yeah
Loan against FD
Wow this is brilliant. Beautiful content and very in-depth knowledge of the IT laws. Most impressive.
Sir just one thing.
When depreciation rate is fixed by the govt. Then why are we deducting 42% or 31% from the cost of car.
31/42 is not the depreciation rate. It is the effective rate of tax applicable on assessee, i.e. the amount of Income Tax that he is bound to save on the expense that he claims by way of depreciation.
@@TaxationWithCASahilJain
Sir my father is planning to buy a Scorpio & vo GST mai bhi register hai or income 10 lakh se above hai. If we buy that Scorpio for Transportation business kya hume 31% wala profit ho sakta hai?
Please reply
Dep here is fully consumed over the life of asset 42/31% is effective tax on income
Rockstar of CAs.. great Jain sir
Thanku so much sir for sharing practical life experience 🙏
Ur experience very helpful to us ❤️
I like the way you explain, simple n clear.
Pls answer me : What if i transport my self from my Home to office/Customer place. Would i able to get Direct GST Input ? ?
sir provisions of GST restricts claiming ITC if depreciation is charged under income tax act. how can we do that?
Charge depreciation only on the taxable value not on ITC component.
Valuable information, I will surely consult you before buying my next new car. Thank and God bless you Sahilji.
Sir, I have a doubt.
If we are considering the three exception under CGST Act for taking ITC then in the first case( dealing in business of motor vehicles), the depreciation won't be allowed as the car will be considered as goods, so we won't be able to take the benefit of depreciation.
Yes, In 2nd and 3rd case(transportation one and driving school one), depreciation will be allowed under Income tax act.
Correct. In case you supply cars, they will be a stock in trade for you and you can claim the “entire cost excluding gst” as revenue expenditure in Income Tax Act. No need to claim depreciation here.
@@TaxationWithCASahilJain Thanks Sir!
@@TaxationWithCASahilJain Sir please take CS excutive tax laws classes if possible 😑
Wonderful observation Vraj Gandhi bhai ..👍
@@TaxationWithCASahilJain Sir in 2nd case do we have to buy a yellow plate vechicle or can get in white plate car also we gat itc as most of the time private cars are used for transportation of passengers.
Sir please reply
Well,this is my very first video and it feels like m gonna be binging on it from now... Thankyou sir🤩🤩
Thank you sir for englightened us with such a deep knowledge ♥️♥️
Hello sir,
Thanks for this beautiful knowledgeable video, also I have some question you just said that if your income is less then 10Lac then don't buy the car...
So I am an government employees my income se around 6.5 Lac (around 45-47 per month) and we are just planning to buy a family car total members in my house is 6, so we thinking about to buy a Toyata Innova crystal "OR" MG Hector(obviously 1 car only) on diwali so please give me your suggestions how much approx tax I can save also should I buy a car with a loan or without.
Note that :- 1st I have my own house(no loan debt free), 2nd no loan currently I own, finance track record is balance 3rd not using any credit card 4th about investment I m investing in share market, PPF and RD for families saving, Sukanya Samriddhi for my daughter, and all members in my house having Medical And Life insurance and also investing in Mutual fund. No ther other business and have small amount of savings as an emergency fund
Hope you get my point.
Really thanks for the videos 🥳
Can't say about reducing cost but if you are not using your section 80cc completely for deduction than you should go for a loan
But sir what about the provision mentioned in section 16(3) of CGST Act? Doesn't it bars a person from claiming ITC, if depreciation is also being claimed?
GST law is clear in this area.. It states that if the registered person claims depreciation on the ITC portion of the asset, then he cannot claim the ITC against GST liability. However, if the ITC is eligible to claim, then the cost of asset is straight away reduced by the ITC portion and hence no depreciation on that part can be taken to P&L.
Talk to CA
You Can Contact Me For Service
Dep claim on cost excluding GST. Then we can take ITC without any problem legally
Amazing Sahil … I think you have to make a video on explaining the no of years benefitting that 31% .. for bullet system in EMI .. where we pay lumsum at 12 month
I can’t understand hindi. 😔😔😔
Then I learned that, even though I am from Karnataka i learnt Hindi.
Save total ₹47L buy not buying it...
Please give the same example with Tata Safari for salaried person. It's good to learn a new thing 👍
Is there anything that a salaried employee can do to save tax on their purchase of a new car ? A video on that will be really helpful
Saw the first video of yours and subscribed ..
Kudos to you .
Superb information ...
Aur koi nahi bata sakta ...
👏 👏 well explained , ab thak patha nahi hai
Thanks for sharing this valuable knowledge. As mentioned in the video regarding how to get car loan of 2% by playing with taxation I am really keen to see that valuable information as i am planning to buy a new car. Looking forward to see that video. Thanks in advance
Sir apki classes ak dam concept CLEARITY deti hai but apki classes ki fees bhaut jyada hai 🙏🙏
Kya dusra video aa gaya hai Sir??...mujhe nahi Mila
Is video me koi doubt nahi hai.
I always follow your channel for practice knowledge
thanks, learned something new & interesting,
i m planning to buy an electric car, do i get specific benefits for that?
Mr. Sahil, I appreciate your sincerity and knowledge and thanking you for sharing with us. Keep smiling.
You can not claim any GST on Motor vehicle unless you have a business of supply of vehicles or transportation of passenger.
Such wonderful information
But can you explain what you said at the last moments about the loan at 2%, cause i am thinking of buying a car and this information will be very helpful
Great video sir. It'll be awesome if you can answer my query.
Is a hotel eligible for ITC if the car is used for guests ?
Car purchase : What are the taxation benefits for consultants (supply of services)? Whether ITC is available ? What is the maximum depreciation % claim per annum ? I hope car insurance paid during the year can be claimed as an expenditure.
Hello Sahil. I am impressed the way you explained the whole tax saving on buying a new car. Can you please guide me if I would buy a car which cost around 43.5 lac being a job person how shall I avail loan on this. I am really looking forward to hearing from you soon. best regards
Very Informative Video❤✨😍
TCS and ITC benefit for cars & others under GST rule is nothing but a cashback or coupon thing that we claim in our routine life! It's the same thing that we experience in Online/offline shopping places like Reliance Trends. A customer buys 2000 rs worth of goods from Reliance Trends' mall. They give Free Coupon worth of 500 rs. When customer goes again for shopping in Trends, he uses same coupon for discounting new goods!!
Thanks for amazing information. Should we buy cars on HUF, will that help in saving on purchase? Assuming huf will be showing car will be used for earning by employing driver.
Govt employees ke liye v tax benefits explain Kiya kijiye sir....
The concept of common credit for partially business use and partly personal use.
Very nicely explained.
Will you please make a video on - Company Car lease policy for employees. Whether Car leasing policy is legal asunder ITC and how it can be used by the employees and employer.