ITC on repair/ servicing of generator (It is a fixed asset)

[bhimsen gupta]

Can I claim ITC on generator servicing and repairs with comsumables and parts. The generator is a fixed asset with us.

Thanks

AI Summary

Eligibility of Input Tax Credit on Generator Repairs Depends on Revenue Expenditure Classification, Not Capitalization A query was raised about the eligibility of claiming Input Tax Credit (ITC) on the servicing and repair of a generator, which is considered a fixed asset. The consensus among respondents is that ITC can be claimed if the repair expenses are treated as revenue expenditure rather than capitalized. The generator qualifies as plant and machinery, making ITC available regardless of capitalization. Additional advice includes ensuring compliance with environmental laws regarding noise and air pollution for generators.