Itc on Construction of Immovable property
veera (self) (289 Points)
10 September 2019
Dear Sir, can we claim itc on Construction of Immovable commercial property.
5 Replies
saisab maitra
(CA ( final ))
(16 Points)
Replied 10 September 2019
Itc on Inward supply received by a taxable person for construction of an immovable property other than plant and machinery is not allowed
Ashay Shah
(31 Points)
Replied 10 September 2019
Acoording to me,
Any ITC taken on inward supply of construction of an Immovable Property except the construction of plant & machinery mentioned u/s 17(5)(e) cannot be taken.
Hence We CANNOT CLAIM ANY AMOUNT OF ITC on any Construction of Immovable property which is Capitalised in the books.
But here as we know any amount capitalised cant be taken for ITC credit.So at the same time the said expenditure for Construction is Expensed out then for that expense the ITC can be claimed.
Any ITC taken on inward supply of construction of an Immovable Property except the construction of plant & machinery mentioned u/s 17(5)(e) cannot be taken.
Hence We CANNOT CLAIM ANY AMOUNT OF ITC on any Construction of Immovable property which is Capitalised in the books.
But here as we know any amount capitalised cant be taken for ITC credit.So at the same time the said expenditure for Construction is Expensed out then for that expense the ITC can be claimed.
Piali Roy Chowdhury
(605 Points)
Replied 10 September 2019
No you cannot claim ITC on Construction of Immovable Property as it is Blocked under Section 17(5).
srinivasan
(Executive )
(16 Points)
Replied 11 September 2019
yes capital expenditure only not available for credit. if you charge are revenue u can claim. (if used for furtherance of business)
as per 17 (5)
for the purpose of the clauses expression "construction" includes re-construction , renovation, additions, alterations or repairs to the extent of
Capitalisation to the said immovable property.
as per 17 (5)
for the purpose of the clauses expression "construction" includes re-construction , renovation, additions, alterations or repairs to the extent of
Capitalisation to the said immovable property.
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