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2023 (8) TMI 1200 - AUTHORITY FOR ADVANCE RULING, TAMILNADUInput Tax Credit - works contract services used for the repair and maintenance factory building to the extant it is treated as revenue expenditure as per accounting standards - Section 17 of the GST Acts - HELD THAT:- Though Section 17(5)(d) blocks ITC on goods and services received by a taxable person for construction of immovable property on his own account including when it is used in the course or furtherance of business, as per the explanation, the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property. Perusal of purchase order/work order revealed that the Applicant has procured certain goods and services towards renovation of factory buildings. But, there is no mention about the actual factory building or deteriorated portion of factory building to be renovated or repaired, so as to ascertain whether repair work has been carried out only for the purpose of preserving or maintaining an already existing factory building, which does not bring a new asset into existence. The Applicant is entitled to ITC on the goods and services received towards repair of existing factory buildings (which were already capitalized) to the extent of non-capitalization of expenses in their accounts.
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