Input credit

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parimala

parimala (Querist)
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28 February 2018 Whether we can take credit of tax charged on contractor bill for renovation of Rented office?

Udaya Chandran

Udaya Chandran (Expert)
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28 February 2018 ITC is not available on construction of buildings including renovation.

Joswin Punchakunnel

Joswin Punchakunnel (Expert)
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28 February 2018 Explanation to 17 (5) (d) is reproduced as :
"For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property"

In my opinion if the renovation to the rented building is not capitalised as an asset in the building the same shall be eligible for input tax credit. Whether the expense is required to be capitalised or not would depend on the circumstances.

RAJA P M

RAJA P M (Expert)
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28 February 2018 Yes... I agreed to Mr Joswin Punchakunnel.. If it's rented building then You can avail the ITC benefits of "Repairs and Maintenance".

Udaya Chandran

Udaya Chandran (Expert)
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28 February 2018 Yes, it is available for repairs and maintenance as long as the expenses are not capitalized.

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