Vijia Kumar ( ) (53 Points)
18 May 2017We are in the field of construction (plant installation, erection, commissioning, unloading etc) in this process we purchase a lot of materials for our own use like consumable, safety items, machinery etc, can we take input tax credit on these purchases.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(161012 Points)
Replied 18 May 2017
Consumables and safety items............ Yes.
Machineries will come under capital goods, which will be subject to different criteria.
Vijia Kumar
( )
(53 Points)
Replied 19 May 2017
5. Input Tax Credit
Section 17 (5)(c) : Input Tax Credit shall not be available in respect of the following, namely:
“ works contract services when supplied for construction of an immovable property ( other than Plant and
Machinery) except where it is an input service for further supply of Works contract service”The restriction does
not apply to plant and machinery and also in case the input services are further used for supply of Works
Contract service( Contractor can avail the ITC in respect of services availed from the sub-contractor).
Sir, please explain can we get input tax credit on purchases.
CAclubindia
