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Regarding ITC

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nukanaboina maruthi

150 Points Posted on 29 November 2020

is ITC available to a works contract company on air conditioners , providing air conditioner benefits to their staff or for their office rooms.

Replies (4)

Quick Summary

Yes, a works contract company can generally claim Input Tax Credit (ITC) on air conditioners used for business purposes, whether for staff benefits or office rooms. As air conditioners are considered capital goods used in the furtherance of business, ITC is claimable under Section 16(1) of the CGST Act 2017. However, all four conditions stipulated in Section 16(2) must be met, and the credit must not be blocked under Section 17(5).

Shivam RC

Student

23693 Points Posted on 29 November 2020

Yes Input Tax Credit ( ITC ) on Air Conditioner ( AC ) can be claimed by the Works Contract Company. There is no such restrictions...

As per the Provision of Section 16(1) of the CGST Act 2017, ITC on Inputs, Input Services and Capital Goods used in the course or furtherance of business can be claimed, subject to blocked credit U/s 17(5) of the CGST Act 2017.

AC is a Capital Goods which is being used for business purpose. Hence you can claim ITC provided all the FOUR Conditions as laid down U/s 16(2) of the CGST Act 2017 has been satisfied...

Regards,
Shivam RC.