Input credit on residential apartment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2015 Hi,

We have an LLP. We own a Spa in Bangalore. We want to buy an apartment in Bangalore in the company's name for the Director's use. Would we be able to take the service tax input paid to the builder? Also would we be able to take the home loan interest rebate on the income tax for the company?

Thank

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 November 2015 Service tax input credit is not available on service tax paid to builder. As the house is in the company's name interest paid can be claimed as expenses. Perks on the house will be added in the hands of director.

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2015 Thanks a lot for your response Mr. Seetharaman. Can we take the entire Principle and Interest of home loan as expense?

Are you based out of Bangalore ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 November 2015 Capitalize the cost of building in the books of accounts of company and interest payment can be claimed as expense.
I am in Pondicherry.