Can works contractor avails input input on material purchased in his name

ITC / Input 274 views 4 replies

Hi,

One of My client is doing work contract business. He is providing composite supply material & labour for his client. And he is purely outsource labour contract to another sub contractor. 

1. Is he eligible to avail input on material purchased in his name (cement purchase)?

2. The above subcontractor (labour contractor) is unregistered service provider, is Main Contractor (my Client) liable to pay rcm for availing input service from unregistered service provider?

Thanks in advance

regards

K.Senthiil Prasad

Replies (4)

1. As per sec 17(5)(C), where the works contractor received the input service for further supply, then the same is eligible to claim ITC.

 2. Till yet no persons/ goods/services has been notified by the govt., So RCM  doesn't applies

sec 17(5)(C), states about input services only for furtherance supply. My doubt is about input supplies (material purchase)


 

Sir you can claim full ITC on inputs like iron, cement used for your works contract..and more over mere supply of labour by any person is an exempted service..
the words input service is applicable to final consumer, in this case the customer can't avail itc


CCI Pro

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