Gst -two wheeler finance,works contract -applicability???
This query is : Resolved
11 December 2017
Hi
Please clarify whether GST is applicable if a person is involved in TWO Wheeler Finance business???? He does only finance ..he doesnot buy and sell vehicles. So is GST applicable on Interested collected on finance amount etc???
Can a works contractor claim Input on cement,steel i.e on inputs used for completion of contract???
A business person has made construction of wall for his business premises can he claim input for the materials (cement and steel) used???
Please clarify whether GST is applicable if a person is involved in TWO Wheeler Finance business???? He does only finance ..he doesnot buy and sell vehicles. So is GST applicable on Interested collected on finance amount etc???
Can a works contractor claim Input on cement,steel i.e on inputs used for completion of contract???
A business person has made construction of wall for his business premises can he claim input for the materials (cement and steel) used???
CA R SEETHARAMAN
(Expert)
11 December 2017
1 GST not applicable on two wheeler finance.
2 works contractor can claim ITC on steel and cement used.
3 Business person can't claim ITC on wall construction.
2 works contractor can claim ITC on steel and cement used.
3 Business person can't claim ITC on wall construction.
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11 December 2017
Sir
Thank you. As the wall is a capital asset and the premises is own, why cannot he claim it???
Thank you. As the wall is a capital asset and the premises is own, why cannot he claim it???
CA R SEETHARAMAN
(Expert)
11 December 2017
You are right that was the rule required modification.
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11 December 2017
7. Constructing an immovable property on own account
No ITC is available for goods/services for construction of an immovable property on his own account. Even if such goods/services are used in the course or furtherance of business, ITC will not be available.
But this rule does not apply to plant or machinery. ITC is available on inputs used to manufacture plant and machinery for own use.
Example-
Ajay Steel Industries constructs an office building for its headquarters. ITC will not be available.
Ajay Steel Industries also constructs a blast furnace to manufacture steel. ITC is available since it is a plant.
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31 October 2026
Interest on loans is exempt (Notfn 12/2017-CT(R) entry 27), but processing fees, documentation charges and foreclosure charges collected by the financier are taxable at 18%, so a financier crossing the threshold on these charges must register.
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