Input tax credit on JCB

[Prateek Agrawal]

An agreement with JCB owner that we will pay monthly rent of ₹ 50000/- to him if any repair and maintenance of JCB will bear by us . If any repair and maintenance done by us and invoices are prepared in our company name can we take INPUT TAX CREDIT of the same in our books of A/c

AI Summary

Debate on Input Tax Credit Eligibility for Repair Costs on Rented JCB Machines Under Section 17 of GST Act A forum discussion centered around the eligibility of Input Tax Credit (ITC) for repair and maintenance expenses incurred by a company renting a JCB machine. The company pays a monthly rent and bears repair costs, with invoices in its name. Most participants agreed that ITC is available, arguing the user acts as a temporary owner and maintenance is in furtherance of business. However, some dissenting views highlighted ownership issues and suggested the machine owner should bear repair costs. The debate extended to similar scenarios, like crane hire for inventory movement, confirming ITC eligibility in such cases.