TMI BlogEligibility of Input Tax CreditX X X X Extracts X X X X X X X X Extracts X X X X ..... Fact: The company has taken a building on leased for 9 years to open a showroom for bikes (Retails business), and to operationalize it, the company has incurred expenses in relation to interior and other civil works as mentioned below : Electricity wires- Rs.- 1,00,000/- approx (Internal Fitting) Electricity fitting and lights- Rs- 5,00,000/- approx (External) Fixed furniture - Rs- 10,00,000/-appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ox Removable furniture- 15,00,000/- approx Metal fixtures - 8,00,000/- (which are removable but can be resold as scrap) AC unit- 7,00,000/-approx Floor tiles- 4,50,000/-approx Bathroom tiles- 1,00,000/- approx Civil works- 2,50,000/- Total expenses : - 46,00,000/- Note : # The company is discharging applicable GST liabilities on sales of bikes. # This premises is used in the course or the furthera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of business. # The company has paid GST of Rs- 828000/- approx in respect of goods/services purchase/receive for carrying out the Civil and Interior Works in different floor of the building. Since all the inwards supply/goods are received by the company are taxable under the GST Law. Please guide us: Can we avail Input Tax Credit on these expenses if all the works are done by registered person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s? - Reply By Shilpi Jain - The Reply = Require further details to comment. Is this a renovation activity undertaken or a bare shell has been made ready to use for the showroom? Are all these expenses capitalised? - Reply By Padmanathan Kollengode - The Reply = There are multiple facets which needs to be looked into. 1. Accounting treatment has to be looked into since the expression construction i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n sec. 17(5)(c) and (d) depends on to the extent capitalized . 2. Safari Retreat case is pending before the Hon'ble Supreme Court. Anyhow following factual points merit consideration: 1. electrical fitting (external) which are removable is generally not part and parcel of building - ITC should be eligible in my view. 2. Removable furniture and metal furniture are also not part and parcel of bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilding - ITC should be eligible 3. Centralized AC unit (ducted) / lift etc maybe integral of the building itself and cannot be dismantled and relocated as such without considerable damage - Hence, ITC would be blocked. 4. window A/c or Split A/c etc which can be easily dismantled and set-up elsewhere are not part and parcel of building - Hence, ITC shall be allowed. - Eligibility of Input Tax Cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit - Query Started By: - DEVENDRA KUMAR Dated:- 2-4-2024 Last Replied Date:- 6-4-2024 Goods and Services Tax - GST - Got 2 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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