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Input tax

15 January 2019

A works contractor will get input tax credit for materials purchased?

he purchased a vehicle for his business, will credit also available for that ?

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9 Replies

shailendra shukla (Bhopal) (1741 Points)
Replied 15 January 2019

yes itc is available for material as well as vehicle....

Aman Kumar (Accounts Executive) (744 Points)
Replied 15 January 2019

Yes ,you can itc for both cases.

Mohit lodhi (student) (952 Points)
Replied 15 January 2019

If it is motor vehicle then you can not claim ITC as per section 17(5).
If I am wrong please give the reason.

shailendra shukla (Bhopal) (1741 Points)
Replied 15 January 2019

if motor vehicle is used for transportation of goods you can claim itc on that....

Mohit lodhi (student) (952 Points)
Replied 15 January 2019

Yes, if vehicle is used for transportation of goods then ITC available.

Reghu prasad.R (.) (57 Points)
Replied 15 January 2019

But itc for materials also eligible? I guess it is available only in the case of construction of plant and machinery any one please confirm?

shailendra shukla (Bhopal) (1741 Points)
Replied 15 January 2019

itc for material is also available..... itc for "services" is not available to a work contractor.... it for goods is available

pritesh (CA Final student) (7101 Points)
Replied 15 January 2019

The material purchase relating to construction of immovable property ITC will not be available as per sec 17(5)

regarding vehicle i agree with mohit sir answer.

shailendra shukla (Bhopal) (1741 Points)
Replied 16 January 2019

itc will not be available for works contract "services" when supplied for construction of an immovable property [other than plant and machinery] except where it is an input service for further supply of works contract service.
In the present case we r talking about material(goods) used so itc will be available..