TMI BlogBlock credit - Works contract services use construction of an immovable property (except plant & machinery) [section 17(5)(c)]X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service. In other words, Input tax credit for any tax paid on work contract services shall be available in the following cases When supplied for construction of plant and machinery w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t machinery define in the explanation for the section 17(5) of CGST Act Plant Machinery means apparatus, equipment and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes Land, building or any civil structures, Telecommunication towe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f tax charged by M/s Aayush Enterprises. Example 2:- Shiva Ltd. an automobile company, has availed work contract services for construction of a foundation on which a machinery (to be used in the production process) is to mounted permanently. In this case, in the view of the above mentioned provisions, ITC available in respect of work contract services availed by Shiva Ltd. as the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered supplier is engaged in the manufacture of dyeing machine, availed work contract services from M/s Yakkob enterprises for erection and installation of RO treatment plant in factory and capitalization in the books of account. In that case, works contract services for erection of installation of RO treatment plant in factory, works contract services used for construction of plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition provided in explanation in section 17(5) does not included in the plant and machinery pipe line laid down outside factory premises. In that case ITC for tax charge by M/s Yatin Enterprises is not available to Jugal enterprises. - Manuals - Ready reckoner - Law and practice - Reference Guide - Quick Commentary Tax Management India - taxmanagementindia - taxmanagement - taxmanag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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