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ITC on Electrical fittings.

23 April 2022

Dear Sir/Madam

can we claim ITC on Electrical equipment like wire, switch, MCB, Lights, Panel box ?
we booked in our book Electrical Fittings under Fixed Assest...?

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6 Replies

sabyasachi mukherjee (27599 Points)
Replied 23 April 2022

It is possible provided they are used for the purpose of business.

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Abhijit Khan (39 Points)
Replied 23 April 2022

Are you sure sir..?

Ajitesh Ramteke (30 Points)
Replied 24 April 2022

No you can't. Because it is Blocked ITC under section 17(5)

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sabyasachi mukherjee (27599 Points)
Replied 24 April 2022

No connection with blocked credit under section 17(5)

Ajitesh Ramteke (30 Points)
Replied 25 April 2022

As per ADVANCE RULING NO. GUJ/GAAR/R/37/2021 and section 17(5)(c)

When you are constructing a factory building, even Electrical fittings would form part of building and would be capitalized. Ans as per section 17(5), you would not get any ITC on the same.

But once in later years, in the due process of repair and maintenance of building, there is any electrical fitting replaced and the same is expensed out in P & L A/c then you would be eligible for such ITC.

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MVC (Job) (15 Points)
Replied 01 April 2024

Yes, We can take ITC on those.

ITC on electrical fittings are ineligible only when they are used in construction of Building because at that time they are treated as immovable property and they are capitalized in the books.