TaxTMI 
TaxTMI 
Please Help,
Can builder (construction of residential homes and complex) get input tax credit of input goods and services. ?? Please specify section or any description?
Can Builder get input tax credit of input Goods and Services?
30 May 2018 
3 Replies 
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Input tax credit restriction: ITC excluded for construction of immovable property except when used as input service.
Statutory exclusions deny ITC for works contract services and for goods or services received for construction of immovable property (other than plant and machinery) on the taxable person's own account, including capitalised reconstruction, renovation, additions, alterations and repairs. An exception allows ITC where inputs qualify as an input service for further supply of works contract service. Practitioner responses in the document record contrasting views on whether a builder may claim ITC for construction of residential flats, and note that a principal contractor may claim credit for tax paid by a sub-contractor when conditions are met. (AI Summary)
Statutory exclusions deny ITC for works contract services and for goods or services received for construction of immovable property (other than plant and machinery) on the taxable person's own account, including capitalised reconstruction, renovation, additions, alterations and repairs. An exception allows ITC where inputs qualify as an input service for further supply of works contract service. Practitioner responses in the document record contrasting views on whether a builder may claim ITC for construction of residential flats, and note that a principal contractor may claim credit for tax paid by a sub-contractor when conditions are met. (AI Summary)