TaxTMI 
TaxTMI 
Input tax credit
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....nput tax credit<br> Query (Issue) Started By: - DK AGGARWAL Dated:- 20-8-2018 Last Reply Date:- 28-8-2018 Goods and Services Tax - GST<br>Got 12 Replies<br>GST<br>Dear Sir GST-Input Tax Credit 1---Please clarify if the ITC is available on replacement or repair of Tube lights, electric wire, in the office. In the purchase invoice of supplier GST number is appearing of buyer and in GSTR- 2A the IT....
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....C is shown. 2---Similarly, in repair of godown, expenses are incurred for replacement of roof sheet etc and the ITC is appearing in GSTR- 2A. Please note its not a new construction . 3----Similarly, is ITC available on replacement of CAR tyres, battery or service bill. ITC is available in GSTR- 2A as we have given our GST number to the supplier ? Kindly respond asap Reply By Brijesh Verma: The....
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.... Reply: ITC available for 1 & 2 but not for 3 Reply By DK AGGARWAL: The Reply: Dear Sir Is there is any specific reason of not allowing credit in case of clarification --3 as its a CAR used for business purpose and not a NEW purchase of CAR. "3----Similarly, is ITC available on replacement of CAR tyres, battery or service bill. ITC is available in GSTR- 2A as we have given our GST number....
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.... to the supplier " Kindly respond in detail and quote some section etc. Reply By Brijesh Verma: The Reply: Dear Sir Section 17(5) disallows credit in respect of motor vehicles. Further, the recent clarification (proposed amendment) speaks about such disallowance in respect of servicing, repair, etc as well. Reply By DK AGGARWAL: The Reply: OK Thanks Sir Reply By Ganeshan Kalyani: The ....
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....Reply: Input tax credit is allowed on query 1 & 2. Third one is covered under ineligible list. Reply By Pavan Mahulkar: The Reply: It may not be available for 2 also... Please read section 17 (c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service; (d)....
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.... goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business. Explanation.--For the purposes of clauses (c) and (d), the expression "construction" includes re-construction, renovation, additions or alterations or re....
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....pairs, to the extent of capitalisation, to the said immovable property; Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: I endorse the views of Shri Madhun. Reply By Brijesh Verma: The Reply: They havent capitalised it. It appears specifically from the query that the expense at 2. Is of revenue nature Reply By Ganeshan Kalyani: The Reply: Such expenses are treated as renevue expenditure. They ....
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....are not capitalized. Hence credit is allowed. Reply By Pavan Mahulkar: The Reply: ITC may not be available in case 3 also, Section 17(5) (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (a) motor vehicles and other conveyances except when they are used-- (....
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....i) for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (ii) for transportation of goods; So it is clearly mentioned in the section that "ITC shall not be available in respect of" which indicates that neit....
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....her on the purchases of the same nor on the parts there of Reply By Ramaswamy S: The Reply: 1--- ITC on replacement or repair of Tube lights, electric wire, in the office.- Allowed 2--- ITC on repair of godown, expenses are incurred for replacement of roof sheet etc Not allowed (negative list) 3---- ITC on replacement of CAR tyres, battery or service bill.- Not allowed (Negative list) Regards....
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.... S.Ramaswamy Reply By Ganeshan Kalyani: The Reply: Credit is allowed in all the three query. I correct my previous reply on query no.3. Credit is not allowed on new motor vehicle. The expense related to motor vehicle is not mentioned in the negative list under section 17(5). Hence the credit is allowed.<br> Discussion Forum - Knowledge Sharing ....