Question 34: Pl let me know the current position of ITC for Civil work undertaken to construct building for new factory '

Answer: Section 17(5) contains as follow 

(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:'

(a) motor vehicles and other conveyances

(c) 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;

(d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.

Explanation. ''For the purposes of clauses (c) and (d), the expression 'construction' includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property

The provisions will have following effect 1 ITC is available if the material or services are used for        

a) For erection and commissioning of plant and machinery        

b) For providing outward supply of construction        

c) If the expanses are not capitalized  in case of renovation repair etc In cases other then mentioned above credit is  not available. (Reply Dt. 21/12/2017)