TaxTMI 
TaxTMI 
SIR, A FACTORY CARRIED OUT REPAIRS AND RENOVATION ON THEIR FACTORY BUILDING. WHETHER THEY ARE ELIGIBLE TO TAKE ITC ON CEMENT, STEELS AND OTHERS AS PER SEC.16 OR NOT ELIGIBLE AS PER SEC.17(5)(d). KINDLY POST AND GUIDE
ITC ON REPAIRS ON CONSTRUCTION
13 Jul 2021 
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Input tax credit on repairs depends on capitalisation and whether materials form part of plant and machinery, not buildings.
Whether input tax credit is available on materials used for repairs and renovation of a factory building depends on whether the repair costs are capitalised and whether the materials form part of construction of plant or machinery. Credit is available to a taxable business where repairs are not capitalised, whereas supplies related to construction or renovation of immovable property are excluded; the definition of plant and machinery excludes land and buildings. (AI Summary)
Whether input tax credit is available on materials used for repairs and renovation of a factory building depends on whether the repair costs are capitalised and whether the materials form part of construction of plant or machinery. Credit is available to a taxable business where repairs are not capitalised, whereas supplies related to construction or renovation of immovable property are excluded; the definition of plant and machinery excludes land and buildings. (AI Summary)