banner_ad

Itc on construction of warehouse for renting business

This query is : Resolved 
Profile Image

Profile Image

(Querist)
25 March 2019 FACT:: An Open Commercial plot is co-owned by two individual person and they want to create LLP in which they will be partner. They will give said plot to newly formed LLP on long term lease for 99 years on nominal rent.

Business of LLP will be renting of warehouse which will be constructed on said plot. The total construction cost will be paid by LLP.

There are two options available to construct warehouse, First option is to do self-construction by assigning local labours with all material to be purchase by LLP. Second option is to give contract to some builder (Regd. under GST) to construct the warehouse. In both the options, it will take at-least 6 months to one year to get warehouse constructed and ready for renting out the same.

QUERY:: Will LLP get GST ITC on consideration (expenses incurred) paid for constructing warehouse? If LLP gets GST ITC then it will utilise this ITC against subsequent GST Liability resulting from rent income earned from this new warehouse.

Dear experts please give your valuable opinion/remark to resolve my above mentioned query. This will also help readers to gain knowledge in field of GST. Many Thanks.
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
26 March 2019 No ITC can be claimed on construction of buildings including warehouse.
Profile Image

Suresh Yadav

Profile Image

Suresh Yadav (Querist)
26 March 2019 Dear Sir, Thank You for your remark. I will use this warehouse for furtherance of business of renting. Then too i will not get ITC ?
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
26 March 2019 Yes ITC not available.
Profile Image

Suresh Yadav

Profile Image

Suresh Yadav (Querist)
26 March 2019 Okey Sir, Thank You for your valuable remark.
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
26 March 2019 Welcome.........





.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
05 May 2026
Accountant

Sanjay K Pathak & Associates

Noida

Graduate (Any)

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details