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ITC on expenses

25 December 2019

dear all

it will be useful if any of the member share a chart of expenses which can be claimed or not eligible etc in readable format

it will be a ready Reckoner for people like us.

pls explain can expenses against repairs and maintenance can be claimed or not (eg.painting, bulb purchased) for official use only

I had a doubt whether it comes under sec 17(5) maintanence expenses not eligible ( maintenance vehicle expenses not eligible. I aware of this)

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6 Replies

Sivaramaraju G (Learner) (2398 Points)
Replied 25 December 2019

If it is for office and you are into manufacturing then you can't, if you are into service like doctor, CA, lawyer then you can (my understanding)

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CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 25 December 2019

In Sec 17(5) , what is mentioned regarding repairs and maintenance is 'servicing , repair and maintenance in so far as they relate to Motor vehicles ,vessels and aircraft'.

Hence it does not cover all other repairs and maintenance.

Also goods and services received for construction (includes repairs) of interalia Land and Building are also covered in Blocked credits.

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SOWJANYA M (840 Points)
Replied 26 December 2019

[c] 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 [c] and [d], the expression "construction" includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property;

from the above my understanding is any repairs and maintenance even in the course or furtherance of the business , expenses incurred on capitalization eg. on building or for maintenance on office premises etc will come under blocked credits and ineligible u/s 17(5)

if so, can I receive invoice from dealer as mere cash without mentioning my GSTN

taking input and again deducting as ineligible credit, instead not taking input is ok or not

pls correct me if Iam wrong

CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 26 December 2019

Yes your understanding is not wrong.

But will your dealer give you invoice with out G.S.T , being a registered dealer.

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SOWJANYA M (840 Points)
Replied 26 December 2019

Due to less amount of purchase will ask the seller to specify cash or just name in the invoice
will it make any difference

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CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 26 December 2019

It does not make any difference to you

But I wonder , how could he do it?being a registeted dealer , he has sequence of Invoice and format as per GST rules.For your sake how could he do it.?thats my thaught.