ITC ON FACTORY BUILDING GOODS AND LABOUR CHARGES

[SAFETAB LIFESCIENCE]

Dear Experts,

Please advise us whether we can take ITC on the following different cases

1. Investment on Factory Building on purchase of Building construction materials and booked in Fixed Assets

2. Investment on Admin Building on purchase of Building construction materials and booked in Fixed Assets A/c.

3. Investment on Factory Building on payment of Labour charges and booked in Fixed Assets A/c.

4. Investment on Admin Building on payment of Labour charges and booked in Fixed Assets A/c.

5. Expenses on Factory Building repairs on purchase of Building construction materials and booked in Building Maintenance Account (P & L account)

6. Expenses on Admin Building repairs on purchase of Building construction materials and booked in Building Maintenance Account (P & L account)

7. Expenses on Factory Building on payment of Labour charges and booked in Building Maintenance A/c.

4. Expenses on Admin Building on payment of Labour charges and booked in Building Maintenance A/c.

Experts' advise with rules or notification details and explanations are humbly solicited at the earliest time please.

AI Summary

Input tax credit restriction on construction of immovable property disallows credit for capitalised building works; repair and maintenance credits allowed.
Input tax credit is disallowed for materials and labour used in construction, reconstruction, renovation, additions, alterations or repairs to immovable property when such costs are capitalised and booked to fixed assets; input tax credit is allowable for repair and maintenance expenditures that are charged to profit and loss and not capitalised.