DEAR EXPERTS,
AUTO COMPONENTS MANUFACTURING INDUSTRY, AVAILED ITC OF CONSTRUCTION WORK.
CONSTRUCTION WORK ITC IS IT ELIGIBLE..?
IF NOT WHAT ARE THINGS TO BE DONE.
PLEASE SUGGEST
THANKS & REGARDS
FAREED
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ITC - CONSTRUCTION WORK
Replies (7)
Quick Summary
As per section 17(5) of the CGST act 2017 , ITC on Construction work is blocked credit not available , So you have to reverse Input Tax credit with interest applicable .
Thanks for guidance...Mr.Prasad Nilugal
Well come
ITC on construction is blocked if it is in the nature of capital expenditure.
Thanks for guidance...! Mr.Zafar
Thanks for guidance...Mr.Prasad Nilugal
Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=583382
Thanks for guidance...Mr.Prasad NilugalRead more at: https://www.caclubindia.com/forum/details.asp?mod_id=583382
Read more at: https://www.caclubindia.com/forum/itc-construction-work-583382.asp
Cannot directly say ineligible. If I capitalise construction activity which is specifically designed and implemented for Plant & Machinery it gets capitalised to P&M. Such construction is clearly eligible.
Where it is general construction above comments hold good. Although, to the extent of pure construction credit is ineligible, any furniture and fittings, equipments, P&M which are capitalised separately - credit can be claimed if vendor agreements, accounting is clear.
Thanks for your guidance... Mr.Akshay
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