Q. CAN WE CLAIM INPUT TAX CREDIT?

Question

DEAR SIR,

ABC , A GST REGD. FIRM SPENT RS.5,00,000/- FOR THE RENOVATION OF THEIR MARRIAGE HALL/AUDITORIUM .  OIT OF WHICH RS.4,00,000/- CAPITALISED AND SHOWN IN BALANCE SHEET   AND  RS.1,00,000/- SHOWN AS REPAIRS AND MAINTENANCE ( AGGREGATE OF SMALL MAINTEANCE BILLS)  AND CAME IN PROFIT & LOSS A/C.

CAN ABC CLAIM THE INPUT OF THESE ?

CAN ABC CLAIM INPUT, THESE  MARRIAGE HALL/ AUDITORIUM, IF IT IS TAKEN ON LEASE FROM  XYZ?

THANKS TO ALL EXPERTS IN ADVANCE...THANKS VERY MUCH , ALL THE TIME I AM GETTING REPLY TIMELY....

Answer 1

ITC on immovable property is allowed to the extent not capitalised as per sec 17(5) of cgst act. Hence in your case itc to the extent of Rs 1lac.