ITC categorisation

[Madhavan iyengar]

if certain installation expenses related to plant and machinery which is yet to be installed is parked in CWIP plant and machinery

The ITC on installation charges will be available but it is required to be shown under which head ie Input services or capital goods since ultimately the installation charges will go and sit in plant and machinery

please clarify

[Ganeshan Kalyani]

Sec. 2 19) “capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;

The above definition states "goods" to be capital goods on the condition. Since installation charges are service, though it is capitalised it will be categorised as service.

[KASTURI SETHI]

Best advice by Sh.Ganeshan Kalyani Ji.

[Ganeshan Kalyani]

Thanks Sri Kasturi Sir for your pats.