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factory rent

02 December 2018

I have taken a factory for rent year agreement is 35 lakhs but the expenses whatever comes for meachines it will be on my part now my question is can i take Input claim for machinery maitainanace and electricity and for any extra machine purchase and how the accounting procedure will be

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7 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 02 December 2018

can you plz clarify whether you have taken factory with machinery on lease ???

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Pramod Kuruvatti (136 Points)
Replied 03 December 2018

yes with machinery for rent 35 lakhs per year the whole maintenance will be on my account

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 03 December 2018

YES YOU CAN CLAIM ITC , IF YOU ARE HAVING TAX INVOICE FOR THE SAME.

Pramod Kuruvatti (136 Points)
Replied 03 December 2018

but the machinery are not mine it will be wrong if i claim input for the maintainance

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 03 December 2018

BUT YOU ARE PAYING RENT FOR MACHINERY ALSO .... ITS YOUR INWARD SUPPLY CAN ADJUST AGAINST YOUR OUTWARD SUPPLY (RENT)

MOREOVER CAN U PLZ CLARIFY WHAT EXACTLY YOU ARE DEALING IN... MEANS JUST PAYING RENT ?????

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Pramod Kuruvatti (136 Points)
Replied 03 December 2018

sir see we have taken complete factory for rent means it includes machinery and building and land everything.... Now we will get the rent bill from the party for 35 lakhs per year and we will claim input for that there is no issue.... but a factory means there will be some expenses like machinery maintenance electricity labours etc etc which should be paid by us other than rent.... now my question is can we claim input for the electricity bill and machinery maintenance bill since these property doesn't belongs to us but we have to bare the expenses

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 03 December 2018

THATS WHAT IAM SAYING ..... LETS UNDERSTAND WITH EXAMPLE IF SOMEONE IN RENT (ONLY BUILING) DOES REPAIR TO BUILING,CAN AVAIL ITC ON REPAIR ON BUILING SINCE BUILDING IS NOT IN HIS NAME.

HENCE IF YOU ARE PAYING RENT FOR FACTORY INCLUDING EQUIPMENT CAN CLAIM ITC ON ITS REPAIR.