Deepshikha Sharma (Tax Manager) (137 Points)
17 September 2020We are planning to construct a power substation which will be installed in our factory for power distribution to different units of the factory. Can we take the ITC of inputs taken in the installation and construction of such substation. Is it considered as immovable porperty for disallowance of ITC.
prasad Nilugal
(3914 Points)
Replied 17 September 2020
Deepshikha Sharma
(Tax Manager)
(137 Points)
Replied 17 September 2020
Construction of immovable property except "Plant & Machinery". Also , definition of plant & Machinery included Machinery fixed to earth by foundation or structural support.
My query here is that whether such Power Substation falls in the category of Plant and Machinery used in the outward supply.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 17 September 2020
Deepshikha Sharma
(Tax Manager)
(137 Points)
Replied 18 September 2020
Sounds good. Yes we will only be taking the ITC for its installation work and foundation work etc. Thanks for the clarification.
CAclubindia
