Question 38: I am constructing a building. Now input tax credit is not available for `Immovable property` except plant & machinery Building includes 

1.Air Conditioning,

2.Plumbing work for example-pipe fitting,sanatory etc          

3.  Fire fighiting system   

4.Generator   

5.furniture & Fixtures to the building

6.Lighting etc

Now my Question is

1)what is to be taken as PLant & Machinery and what become part of immovable property out of the above.

2) in the case of furniture & fixture what is movable and what is immovable.

Answer:    Section 17 (5) restrict availability of ITC in respect of  (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;

Explanation to  section specifies that 'plant and 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' 

(i) land, building or any other civil structures; 

(ii) telecommunication towers; and 

(iii) pipelines laid outside the factory premises.

3.  Fire fighting system    

Our point wise reply is as follow

1.Air Conditioning, The air conditioning plant is attached to the building but it is covered under the definition of plant and machinery 

2.Plumbing work for example-pipe fitting,sanitary etc   the law exclude  pipelines laid outside the factory premises. but plumbing work will come under civil construction as per building by laws 

3.  Fire fighting system   If in  the contract supply order is separate for equipments and  separate for installation then you can claim credit but if the contract is one to  install the fire fighting system for single value then it will come under work contract and credit will not available  It will be supply will be civil work   

4.Generator  Credit available being covered under the definition of machine   

5.furniture & Fixtures to the building credit available for all movables items  

6.Lighting etc credit available being movable items You may take following guide line  For air conditioner .fire fighting system give order separate for machine and separate for installation   and take credit Those furniture which are different from building you can take credit  The furniture which are internal part of building credit is not available For light fitting give  separate order and take credit Plumbing work no credit is allowed Generator take credit . (Reply Dt. 10/01/2018)