Input Tax Credit

[VIGNESH]

sir .is Input Tax on the AMC charges paid for lift allowed? client has only rental income from commercial property for which he is paying service tax!

[KUMAR Narasimhan]

ITC not allowed if input and input services used for repair of immovable property have been capitalized.

lift will be part of building not plant and machinery and not eligible for ITC under section 17[5][d] of the CGST Act,2017

[VIGNESH]

sir iam asking in service tax era!

[Rajagopalan Ranganathan]

Sir,

In my opinion credit of service tax paid for AMC services provided to the lift located in a commercial property is allowable since the said service is used in providing renting of immovable (commercial) property service which is liable to service tax.

[KASTURI SETHI]

I am also of the same view as expressed by Sh.Ranganathan, Sir. Renting of Immovable Property Service cannot be provided without lift. So credit on AMC for repair of lift is admissible.

[KASTURI SETHI]

Dear Querist,

The following case laws can help you in this context:- (these are general and specific)

(i) Mahindra & Mahindra Vs.CCE 2016 (6) TMI 1000 - CESTAT HYDERABAD

(ii) CCE Vs.CCL Products 2010 (3) TMI 650 - CESTAT, BANGALORE

(iii) Alliance Global Services 2016 (6) TMI 720 - CESTAT HYDERABAD

(iv) Indus Towers Ltd. 2016 (1) TMI 1053 - AUTHORITY FOR ADVANCE RULINGS

[KASTURI SETHI]

Dear Vignesh Ji,

In order to strength your views in your favour on merits, you are advised to go through the case laws relied upon in the above judgments. You will have to penetrate yourself to arrive at some concrete conclusion.

[VIGNESH]

thank u sir, can u also guide me a search engine for the above case laws.

[Vishesh Goyal]

I agree with experts, AMC paid on lift shall be covered under Blocked Credit, and consequently, ITC on such charges cannot be claimed.

[KASTURI SETHI]

Sh.Goyal Ji,

The querist is asking about Cenvat Credit (Service Tax paid on AMC on lift) and NOT about ITC.

[KASTURI SETHI]

Sh.Vignesh Ji,

Since you are a subscriber to TMI, make a personal request to the Chief Editor TMI to provide corresponding citations of TMI of case laws cited above.

AI Summary

Input tax credit for AMC on lifts: dispute over admissibility for rented commercial property services.
Whether service tax/Cenvat credit for AMC charges on a lift at a rented commercial property is claimable is disputed: one view treats the lift AMC as repair of immovable property and thus blocked credit, while the opposing view treats the AMC as used in supplying the taxable renting-of-immovable-property service and therefore creditable; several tribunal and AAR decisions were cited for support and further review.