ITC on Tin Shade

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A new recycling plant is questioning whether the Input Tax Credit (ITC) is claimable on a tin shade constructed for machinery. The core issue is whether this structure qualifies as Plant & Machinery (allowing ITC) or a Building (disallowing ITC). The consensus is that ITC is generally not available on such shades, even if considered part of the Plant & Machinery, and the cost should be capitalised.

AKANKSHA

AKANKSHA (Querist)
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17 October 2024 In a Newly incorporated Recycling Scrap Plant, Tin shade constructed for several Plant & Machineries, so, it will be categorized as P&M and ITC will be available on the material purchased for such construction or it will be categorized under Building and ITC will not be available ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 October 2024 It has to be capitalized.

AKANKSHA

AKANKSHA (Querist)
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19 October 2024 My question was that, as Tin shade was constructed as per pollution Control compliances and chimneys are also there. So, it will be treated as Plant & Machinery or Building ? If, we consider it as P&M, ITC will be available on it otherwise not and it will be capitalized.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 October 2024 ITC cannot be availed on shed even if you may call it P&M.

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