Building constr. work & claim of itc on material purchase
This query is : Resolved
25 February 2019
Sir, May I claim ITC on material purchased for construction/repairing of my clients' residential buildings/offices.
26 February 2019
No
Neither you nor your client can take ITC
Section 17(5)(d) states “goods or services or both received by a taxable person for construction of an immovable property (other than plant & machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.”
It also specifies that “construction includes reconstruction, renovation, additions or alterations or repairs to the extent of capitalization for said immovable property”.
Neither you nor your client can take ITC
Section 17(5)(d) states “goods or services or both received by a taxable person for construction of an immovable property (other than plant & machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.”
It also specifies that “construction includes reconstruction, renovation, additions or alterations or repairs to the extent of capitalization for said immovable property”.
26 February 2019
Madam, thanks for your reply. But madam, construction/renovation/repairing is my business and not for my own personal purpose. Whether in this case also, I will be denied to claim ITC on materials purchased by me for my customers work.
26 February 2019
Yes, you can take ITC on the inputs for providing output services of construction services.
26 February 2019
Thank Mr. Udaya Chandran for your prompt reply
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26 February 2019
Thank Mr. Udaya Chandran for your prompt reply
26 February 2019
If you are in construction business then certainly can take credit ( You did not mentioned this in your query )
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