INPUT tax credit admissibility on works contract

No ... you cannot , it's being disallowed in section 17(5).

Yes as per the Explanation Under clause (d) of section 17(5) , if such expenses is not capitalised & book as revenue expenditure , the ITC can be claimed.

Note : To book as revenue need to consider the nature of Expenditure & being allowed by you CA or otherwise objection will be raise during the Audit.

Sir

 

This is being treated as revenue spend. But it is Guedt House at City. Not within the proximity of plant. Not directly associated with production. Kindly advise.Civil,Plumbing,Painting as a composite works contract will cost Rs.13 Lakhs approx.

As per section 17(5)(d), If the expenditure is used in the course of or furtherance of business, can avail Input Credit. Means if You are getting and revenue or sale Income against the said revenue expenditure only you are eligible. 

Sir

It is Guest House meant for outstation employees, rarely for outside buyers. Difficult to appropriate spend between sales activity and internal purpose. Rgds,

yes it cover under the course & furtherance of business , can be say that it is facility being provided to employee in course of business .