I am manufacturer and i paid the insurance premium. now i got the insurance bill of different policy of car insurance/fire insurance/ staff bus insurance/ building insurance etc.
now, am i eligible to take the ITC for the same.
8 Replies
CA Sunil Kumar
(Chartered Accountant)
(4524 Points)
Replied 02 July 2020
ITC blocked u/s 17(5)
1. Car insurance
2. Staff bus insurance if seating capacity is less than or equal to 13 (including driver)
ITC Allowed
1. fire insurance
2. Building insurance
1. Car insurance
2. Staff bus insurance if seating capacity is less than or equal to 13 (including driver)
ITC Allowed
1. fire insurance
2. Building insurance
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4825 Points)
Replied 02 July 2020
Yes agree with Sunil Kumar, also insurance on gratuity, liability insurance, stock insurance are eligible where related to business function.
yash
(accountant)
(519 Points)
Replied 02 July 2020
And if staff bus having capacity more than 13 persons then?
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4825 Points)
Replied 02 July 2020
ITC is Eligible u/s 17(5)(aa).
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 03 July 2020
But in my view Insurance on Building can be claimed.
1. Goods or services reced by taxable person for CONSTRUCTION of Immovable property blocked
Insurance of building can never be treated as construction activities & as per Explanation the Construction include reconstruction, renovation, addition or alteration,or repair to the extend of capitalisation to Immovable property.
And also I do not capitalise the insurance expense to building Account.
So in my view the ITC can be claimed on insurance of building.
1. Goods or services reced by taxable person for CONSTRUCTION of Immovable property blocked
Insurance of building can never be treated as construction activities & as per Explanation the Construction include reconstruction, renovation, addition or alteration,or repair to the extend of capitalisation to Immovable property.
And also I do not capitalise the insurance expense to building Account.
So in my view the ITC can be claimed on insurance of building.
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4825 Points)
Replied 03 July 2020
Yes Pankaj ji, in the first message CA Sunil has said eligible itself.
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 05 July 2020
Sorry..... I just misread the Reply from CA Sunil.
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