Sir,
One of client purchased Roofing Sheets for his factory, Does he is eligible of ITC ?, as the amount of Tax is approx 1.5 lakh
5 Replies
CA Amit Kumar
(Chartered Accountant)
(342 Points)
Replied 26 September 2017
Yes,
He is eligible for ITC.
Yash Goyal
(Accountant Businessmen)
(209 Points)
Replied 26 September 2017
But according to Sec 17(5), ITC is not eligible for Building related products.
CA Amit Kumar
(Chartered Accountant)
(342 Points)
Replied 26 September 2017
Yor are right, ITC would not be available
Yash Goyal
(Accountant Businessmen)
(209 Points)
Replied 26 September 2017
That's ok,
One more thing, Is ITC available for Fire Fighting Equipments, installed for the factory safety, and in which accounting head it will be treated.
RAMESH KUMAR SINGLA
(PROFESSIONAL)
(1777 Points)
Replied 26 September 2017
In my view, section 17(5) is not applicable here, since there is no supply of works contract service for construction. The supply merely pertains to sheets and is not coupled with construction. Therefore, the tax suffered on sheets is available for credit. The sheets are inputs intended for use in furtherance of business.
Further, the ITC also avalable in respect of tax paid on Fire Fighing Equments installled in factory, since these are used in furtherance of business.
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