Suppose we have purchased a truck for the transportation business, Can credit be claimed of truck purchased and truck is purchased by proprietor whether purchaser is liable to pay tax under RCM?
Yes you can take input credit on purchase of truck provided it is excursively used for transportation of goods. Kindly refer section 17(5)(a)(ii).
Further, in case business of transportation of goods, if the transporter opt to pay tax @12% then he will liable to pay tax in forward charge on all supplies (to registered or unregistered person) instead of reverse charge. In this case the transporter will eligible to take ITC on input goods and services.