TaxTMI 
TaxTMI 
Dear Experts,
Can we avail ITC on purchase of lift for residential unit and also can we utilise this ITC against rental of immovable property services ?
ITC on purchase of lift for residential unit and can use and set off against renting of immovable property ?
20 Jul 2017 
5 Replies 
3690 Views Asked by
Input tax credit on lift purchases not available where residential renting is nil rated, while construction credits are barred.
Input tax credit on a lift purchased for a residential unit is not claimable because renting of residential dwellings is nil rated, and ITC is not available for exempt or nil rated supplies. More generally, inputs and input services used in construction or in relation to immovable property are typically excluded from ITC recovery for rental services; by contrast, a lift in commercial premises used for taxable activities may qualify for ITC subject to usual rules and apportionment. (AI Summary)
Input tax credit on a lift purchased for a residential unit is not claimable because renting of residential dwellings is nil rated, and ITC is not available for exempt or nil rated supplies. More generally, inputs and input services used in construction or in relation to immovable property are typically excluded from ITC recovery for rental services; by contrast, a lift in commercial premises used for taxable activities may qualify for ITC subject to usual rules and apportionment. (AI Summary)