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)

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)

18 October 2024 It has to be capitalized.

AKANKSHA

AKANKSHA (Querist)

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)

19 October 2024 ITC cannot be availed on shed even if you may call it P&M.

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