alleryStart learning →A firm buys a five-seater car for staff use (tax Rs 1,20,000) and bolted machinery (tax Rs 80,000). Eligible ITC?
ARs 40,000
BRs 1,20,000
CRs 2,00,000
DRs 80,000
Answer & Solution
Correct answer: D. Rs 80,000
A five-seater car used for the firm's own business is blocked under section 17(5)(a), leaving only the machinery credit of 80,000.
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