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TMI BlogINPUT CREDIT ON REPAIRSX X X X Extracts X X X X X X X X Extracts X X X X ..... We have done repair work like painting ,Wall repairs, putting tiles, etc. in our factory gala and amount debited to repairs Maintainnace. Can we avail Input Credit for such transaction. - Reply By Ganeshan Kalyani - The Reply = in my considered view, input tax credit is eligible. - Reply By Alkesh Jani - The Reply = Sir, If the said repairs is with regards to factory (civil structure) it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... falls within the ambit of Section 17(5)(d) of CGST Act,2017 and explanation given may also be taken into consideration. However, as the factory (civil structure) has been booked as capital goods, the repairs of the same shall be added to it. Therefore, in my view ITC cannot be availed. Thanks - Reply By Spudarjunan S - The Reply = Dear Sir, Eligibility of ITC in respect to reconst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruction, repairs maintenance, renovation, additions or alteration of immovable property(excluding plant machinery) has to be determined based on the capitalization of such expenses to such immovable property. For the purpose of capitalization requirement you need to go through AS-10 Accounting for Fixed Assets / IND AS - 16 Property Plant and Equipment . ITC in respect of such ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses i.e.reconstruction, repairs maintenance, renovation, additions or alteration of Immovable Property(other than Plant Machinery):- 1. If capitalised to such immovable property - ITC is ineligible under section 17(5)(c)/(d) of CGST Act,2017 . 2. If not capitalised to such immovable property - ITC is eligible. - Reply By Ganeshan Kalyani - The Reply = Sri Alkesh Ji, the rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... air to the capitalised asset not necessarily capitalised . If the benefit out of the repair is not spread over the year then it is becomes a revenue expenditure. In such cases credit is eligible as specifically provided in section 17 (5) of the CGST Act . Thanks. - Reply By Ganeshan Kalyani - The Reply = As reagard capitalisation of an asset INDAS need to referred. - Reply By KASTURI SETHI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = How this decision is in favour of the assessee ? That is to be analysed. 2018 (17) G.S.T.L. 690 (A.A.R. - GST) = 2018 (9) TMI 1644 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH IN RE : JABALPUR ENTERTAINMENT COMPLEXES P. LTD. - Reply By Ganeshan Kalyani - The Reply = Section 7(5) (c) works contract services when supplied for construction of an immovabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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; The explanation given in the Act states that input tax credit is eligible if not capitalised in the books of accounts. - INPUT CREDIT ON REPAIRS - Query Started By: - SURYAKANT MITH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BAVKAR Dated:- 26-2-2019 Goods and Services Tax - GST - Got 7 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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