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ITC on professional fees paid u/s 194J

28 October 2019

We(Trust) Paid architecture fees for proposed commercial/Residential building construction to a private architect company with GST .We now pay GST On Renting of Immovable Property Services shall I take ITC on the above payment in November GST Payment.

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6 Replies

VINAYAK HEGDE (accounting & taxation freelancer) (246 Points)
Replied 28 October 2019

Can take itc as it is input service used infor output service/ goods sale

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Ritwick Bhanusali (student) (122 Points)
Replied 28 October 2019

No. its under blocked ITC. Output is not works contract..

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Surjeet Negi (947 Points)
Replied 28 October 2019

Since the activity is in relation to immovable property, it would be a construction activity. further, it is assumed that all cost related to building is capitalised instead of charging to revenue in PL. the itc would not be available

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 28 October 2019

Yes if it is not capitalised to building account & kindly make sure that your outward supply is Taxable.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 28 October 2019

Yes.... I agreed to Mr Pankaj Rawat's reply...

@ Mr Meena Vivek.,

If Your supplies are taxable then You can claim ITC if the said amount not capitalized in the Building account.
In case the Architecture fee booked in building account as asset then ITC not available...

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Krishna Chaudhary (Accountant) (4531 Points)
Replied 16 January 2021

Any remuneration or feeor commission by whatever named called, other than those on which tax is deductible under section 192, to a director of a company shall liable to be deducted @ 10%.

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