25 June 2018
Dear sir, If one pvt ltd co. main business is trading Rexine and want to buy a under construction property for rental income. can company avail the I T C benefit which is paid at the time of buying of property?
25 June 2018
Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49 of CGST Act, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person - section 16(1) of CGST Act. Hence not allowable in your case.
26 June 2018
1. You should not Capitalise and claim DEP on GST on Building. 2. The Rental Income should not be exempted, (Used for residential purpose) If these two conditions are satisfied then you can claim the ITC credit.
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