Input tax credit

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Ankit Gupta (Querist)
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15 June 2018 ABC Ltd wanted to construct their building for office use because its doing business on rental building. ABC ltd take architect services for construction of their building. ABC ltd doing trading business. can ABC ltd take input tax credit of architect services which are used in construction of building

CA Padmasri Manyam

CA Padmasri Manyam (Expert)
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15 June 2018 If the amount is not capitalised in books of accounts, credit can be taken.

Ankit Gupta

Ankit Gupta (Querist)
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15 June 2018 As per section 17(5) of CGST act in block credit
© 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) 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 © and (d), the expression
“construction” includes re-construction, renovation, additions or alterations or repairs,
to the extent of capitalisation, to the said immovable property© 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) 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 © and (d), the expression
“construction” includes re-construction, renovation, additions or alterations or repairs,
to the extent of capitalisation, to the said immovable property
whether architect services not included in "' D'" paragraph above mention, if yes than how input tax credit can be taken

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CA Padmasri Manyam

CA Padmasri Manyam (Expert)
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15 June 2018 Goods or services or both received for construction of an immovable property to the extent of 'CAPITALISATION' is blocked credit.
in case the architect services are charged to p&l the said restriction is not applicable. Credit can be taken on the same.