Input tax credit on JCB
Query (Issue) Started By: – Prateek Agrawal Dated:- 30-6-2018 Last Reply Date:- 7-7-2018 Goods and Services Tax – GST
Got 14 Replies
GST
An agreement with JCB owner that we will pay monthly rent of ₹ 50000/- to him if any repair and maintenance of JCB will bear by us . If any repair and maintenance done by us and invoices are prepared in our company name can we take INPUT TAX CREDIT of the same in our books of A/c
Reply By YAGAY and SUN:
The Reply:
In our view ITC would be available to you.
Reply By Ganeshan Kalyani:
The Reply:
I am also of the view that input tax credit is eligible.
Reply By Alkesh Jani:
The Reply:
Sir,
I agree with the views expressed by our experts
Thanks
Reply By Himan
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agreement.
Reply By Alkesh Jani:
The Reply:
Sir,
My view is based on the Notification No.11/2017-CT (Rate) dated 28/06/2017 as amended from time to time. The Sl.No.17 which refers to HSN code 9973 i.e. lease or rental service, wherein, it is stated that temporary or permanent or permitting the use …… Therefore, without its repair one cannot use and even temporary use, the repairing charges are normally borne by the user. It can be conclude that the user is temporary owner of the machinery. Hence, ITC is available.
Further, If, by way of agreement, such charges are reimbursed by the actual owner, then I would say, ITC is not available.
Our experts may correct me if mistaken.
Thanks
Reply By Himansu Sekhar:
The Reply:
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is in course or furtherance of the business hence credit is eligible.
Reply By YAGAY and SUN:
The Reply:
Please check the Explanatory Notes to the Scheme of Classification of Services under GST Regime.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
In my opinion the views of Shri Alkesh is correct.
Reply By AKSHAY NAIK:
The Reply:
Dear Sirs,
Is Input Tax Credit available on Hiring services of Crane for moving of inventory in stores/warehouse?
Thanks,
Reply By KASTURI SETHI:
The Reply:
Yes. It is available. Hiring of crane is classified under the category of "Right to use /supply of tangible goods". It conforms to the definition of "in business or furtherance of business."
Reply By Himansu Sekhar:
The Reply:
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