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

Input tax credit on generator repairs permitted where generator is plant and machinery, irrespective of capitalization in accounts.
Discussion concludes that ITC can be claimed on servicing and repairs of a generator treated as plant and machinery/capital goods; one view conditions claim on treating the expenses as revenue (not capitalising them), while other views treat availment as permissible irrespective of capitalization, with an advance ruling cited in support. Environmental compliance for generator installations is also noted.