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Eligible for ITC
Can I take ITC if we construct a factory & plant a machinery?
Replies (4)
NO ITC is available for goods / services for construction of an immovable property on his own account .
BUT this rule doesn't apply to the construction of plant and machinery .ITC is available for those goods / services used in construction of plant and machinery for his own account.
BUT this rule doesn't apply to the construction of plant and machinery .ITC is available for those goods / services used in construction of plant and machinery for his own account.
ITC on construction of factory/ P&M. This needs to be broken up into the following:
1. Construction related to plant and Machinery ( Including the foundation, structures ) where steel and cement is used. Eligible
2. Construction of building - Not available.
3. P&M which may result in immovable property. Eligible.
Any expense towards Building if capitlised , ITC is block . yes you can avail credit on expense against Machinery ( Refer section 17(5))
Itc cannot be availed on construction of building as per sec17(5).
but in case of plant and machinery you can claim itc
but in case of plant and machinery you can claim itc
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