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Itc on building repair
Indirect Taxation
Sir itc is allowed on building repair if this repair is not a capitalised nature
Answers (17)
Balamurali Unnithan M S
With the law, ITC relating immovable property is a blocked credit?
ITC for the construction of an immovable property cannot be availed, except where the input service is used for further work contract services.
Sudha Reddy
ITC for the construction of an immovable property cannot be availed, except where the input service is used for further work contract services.
Mam, so what's the answer to the question he asked?
Balamurali Unnithan M S
Mam, so what's the answer to the question he asked?
Considering all the inputs stated above in the forum, i would request you to frame the complete answer - will correct it if required.
Sudha Reddy
Considering all the inputs stated above in the forum, i would request you to frame the complete answer - will correct it if required.
Buildings are normally assets and, it's normally capitalised. All expenses relating to a building is also capitalised. ITC taken for the immovable property is a blocked credit. So ITC occurs on the building is also disallowed except for contractors. Mam given the answer to the question is yes. So I get confused.
Balamurali Unnithan M S
Buildings are normally assets and, it's normally capitalised. All expenses relating to a building is also capitalised. ITC taken for the immovable property is a blocked credit. So ITC occurs on the building is also disallowed except for contractors. Mam given the answer to the question is yes. So I get confused.
Its clearly mentioned that ITC for the construction of immovable property cannot be availed. I hope you understand difference between construction and repair.
CA Suraj Lakhotia Admin
Why?
17 of CGST/RGST Act, 2017 debars certain activities/ supplies/work from the eligibility to claim ITC. Can you check the same?
Balamurali Unnithan M S
17 of CGST/RGST Act, 2017 debars certain activities/ supplies/work from the eligibility to claim ITC. Can you check the same?
Pls check at your end and see if repairs are covered in it.
CA Suraj Lakhotia Admin
Pls check at your end and see if repairs are covered in it.
Yes, It's availed through Plant & Machinery, Furniture & Fixtures, Electrical Fittings etc. And also eligible for construction contracts, because it's for a further supply. Otherwise, it's for building repairs, it's ineligible, I think. It's improper, kindly correct it.
Balamurali Unnithan M S
Yes, It's availed through Plant & Machinery, Furniture & Fixtures, Electrical Fittings etc. And also eligible for construction contracts, because it's for a further supply. Otherwise, it's for building repairs, it's ineligible, I think. It's improper, kindly correct it.
Just because you think its improper, it wont be improper. If you see a provision which blocks credits on repairs on buildings, pls let us know. Else the explanation given above suffices for those who want to understand.
CA Suraj Lakhotia Admin
Just because you think its improper, it wont be improper. If you see a provision which blocks credits on repairs on buildings, pls let us know. Else the explanation given above suffices for those who want to understand.
Explanation.â??â??For the purposes of clauses (c) and (d), the expression â??constructionâ?? includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property; I hope you can understand this.
CA Suraj Lakhotia Admin
Explanation.â??â??For the purposes of clauses (c) and (d), the expression â??constructionâ?? includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property; I hope you can understand this.
I know, it's allowed for construction contracts. Apart from a construction contract, repairs /maintenance and construction of a building is ineligible.? Sec.17(a) to Sec.17(d).
Balamurali Unnithan M S
I know, it's allowed for construction contracts. Apart from a construction contract, repairs /maintenance and construction of a building is ineligible.? Sec.17(a) to Sec.17(d).
We have explained earlier that its allowed for repairs to building. Not sure why you are dragging the same thing again and again.
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