ITC on Electric installation

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Dear All,

A company is setting up its manufacturing plant where in power supply by way of supplying and installation of various electric cable connection from main station outside factory premises to company sub station is required from state government. State government instructed company that company can itself set up this electric installation from thier nominated vendor but ultimate ownership of such electric installation (Assets) will remain with state government.

Now question is whether company can claim ITC of such electric installation which mainly constist of supplying and installing various electric cables?

Whether ownership of such electric installation will remain with state govenment and not with compnay, will it have any impact on ITC eligibility?

AI Summary

Manufacturing company can claim Input Tax Credit on cable installation costs despite state ownership, experts affirm. A manufacturing company is setting up a plant and must install electric cables from an external main station to its substation, with the state government retaining ownership of the installation. The company queries whether it can claim Input Tax Credit (ITC) on the installation costs. Experts in the discussion assert that ITC is claimable since the purchase invoice is in the company's name, and the service is used for business purposes. Ownership by the state does not affect ITC eligibility. However, concerns arise about whether the installation qualifies as an immovable property and the implications of exempt supplies.