TaxTMI 
TaxTMI 
Rate of tax on Painting contract
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....ate of tax on Painting contract<br> Query (Issue) Started By: - Bharat Cholleti Dated:- 20-3-2020 Last Reply Date:- 29-3-2020 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Dear sir, Rate of tax on painting contracts to apartments and buildings, is he eligible for ITC. As painting contracts involves labour. Section 8 of CGST Act says rate of tax should be applicable on principal supply. ....
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....pl advise. Reply By Rajagopalan Ranganathan: The Reply: Sir, If the contract is for supply of paints and labour, then it will be treated as works contract. According to Section 17 (5) (c) of CGST Act, 2017 input tax credit shall not be available in respect of works contract services when supplied for construction of an immovable property (other than plant and machinery). According to Explanati....
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....on under Section 17 (5) (d) "for the purposes of clauses (c) and (d), the expression "construction" includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property". Reply By Rachit Agarwal: The Reply: Painting of Apartment being newly constructed would not be eligible for ITC as the same takes the colours of co....
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....nstruction of Immovable Property Painting of Old Apartment would be in nature of Repairs and Maintenance and would be eligible for claim of credit of ITC and restriction would not apply. Rate of Tax shall be as that of Works Contract Services. Reply By Ethirajan Parthasarathy: The Reply: I am under the impression that restriction under section 17(5) applies to receiver of service.Pls see answe....
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....rs to issue 116150 The query here is from the angle of painting contractor who has nothing to do about capitalisation in the books of contractee.Hence I am of the opinion he is entitled to take input credit irrespective whether the building is new or old Reply By Ganeshan Kalyani: The Reply: The input tax credit would be available to the recipient of service if he accounts it as a revenue expen....
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....ses. Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kalyani Ji, The querist is asking whether ITC is available to the supplier of service (Painting Contractor). Reply By Ganeshan Kalyani: The Reply: The supplier of service is eligible yo take credit on the inputs like paint purchase (if it is in his scope) , labour charges paid by him to manpower supplier. Since the said expenses is an inpu....
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....t service for the purpose of providing output service the credit on inputs would be elogible. Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kalyani Ji, I concur with your views.<br> Discussion Forum - Knowledge Sharing ....