TaxTMI 
TaxTMI 
Eligibility of Input Tax Credit
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....ligibility of Input Tax Credit<br> Query (Issue) Started By: - DEVENDRA KUMAR Dated:- 2-4-2024 Last Reply Date:- 6-4-2024 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>Fact: The company has taken a building on leased for 9 years to open a showroom for bikes (Retails business), and to operationalize it, the company has incurred expenses in relation to interior and other civil works as men....
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....tioned below : Electricity wires- Rs.- 1,00,000/- approx (Internal Fitting) Electricity fitting and lights- Rs- 5,00,000/- approx (External) Fixed furniture - Rs- 10,00,000/-approx Removable furniture- 15,00,000/- approx Metal fixtures - 8,00,000/- (which are removable but can be resold as scrap) AC unit- 7,00,000/-approx Floor tiles- 4,50,000/-approx Bathroom tiles- 1,00,000/- approx Civ....
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....il works- 2,50,000/- Total expenses : - 46,00,000/- Note : # The company is discharging applicable GST liabilities on sales of bikes. # This premises is used in the course or the furtherance of business. # The company has paid GST of Rs- 828000/- approx in respect of goods/services purchase/receive for carrying out the 'Civil and Interior Works' in different floor of the building. Since all t....
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....he inwards supply/goods are received by the company are taxable under the GST Law. Please guide us: Can we avail Input Tax Credit on these expenses if all the works are done by registered persons? Reply By Shilpi Jain: The Reply: Require further details to comment. Is this a renovation activity undertaken or a bare shell has been made ready to use for the showroom? Are all these expenses capit....
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....alised? Reply By Padmanathan Kollengode: The Reply: There are multiple facets which needs to be looked into. 1. Accounting treatment has to be looked into since the expression "construction" in sec. 17(5)(c) and (d) depends on "to the extent capitalized". 2. Safari Retreat case is pending before the Hon'ble Supreme Court. Anyhow following factual points merit consider....
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....ation: 1. electrical fitting (external) which are removable is generally not part and parcel of building - ITC should be eligible in my view. 2. Removable furniture and metal furniture are also not part and parcel of building - ITC should be eligible 3. Centralized AC unit (ducted) / lift etc maybe integral of the building itself and cannot be dismantled and relocated as such without considerab....
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....le damage - Hence, ITC would be blocked. 4. window A/c or Split A/c etc which can be easily dismantled and set-up elsewhere are not part and parcel of building - Hence, ITC shall be allowed.<br> Discussion Forum - Knowledge Sharing ....