Purlin Used in Factory Building

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This discussion explores the tax treatment of purlins used in factory buildings, specifically for heat protection. The key question is whether these are considered capital expenditures or revenue expenses. If deemed capital, Input Tax Credit (ITC) may not be allowed. However, if they are considered revenue expenses, as they don't increase the building's capacity, ITC is likely available. The final decision hinges on whether the expense is capitalised or treated as revenue.

Daya

Daya (Querist)

11 February 2022 Purlin Used in factory Building to protect from heat to employee
whether input can be allowed on purchase and used in Factory Building.,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 February 2022 It's part of factory building input not allowed.

CA Altamush Zafar

CA Altamush Zafar (Expert)

12 February 2022 If the expense is of capital nature then ITC will not be allowed. But prima facie it seems that it is of revenue nature since the capacity of building is not getting increased therefore ITC will be available. There can be more aspects to look but the ultimate reason is that if is is to be capitalised then ITC is nt available otherwise it is available.

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