Input Tax Credit is eligible on purchase of Water Slides


Input Tax Credit is eligible on purchase of Water Slides

THE AUTHORITY FOR ADVANCE RULING

The Question and Ruling as follows :

1. Whether we are eligible to take credit on Input Tax paid on Purchase of Water Slides? Water Slider are made up of Strong PVC.

2. Water Slider are installed on Steel and Civil Structure. ITC on goods and services used in construction of this support structure will be available or not?

3. Input Tax will be available or not on Goods and services used for area development and preparation of land on which water slides are erected.

4. Whether applicant will be eligible to take credit of Input Goods and Services used for construction of Swimming Pool/Wave Pool as water slides directly run into pools?

 

RULING

1. Regarding the eligibilty of ITC in case of Input Tax paid on Purchase of Water Slides, we have to state that Water Slides shall fall within the meaning of the term apparatus, equipment and machinery and therefore shall be eligible for claim of ITC.

2. Regarding the Steel and Civil Structure on which the Water Slides are installed, we have to state that foundation and support structures which are used to fasten plant and machinery to the Earth is classifiable as “Plant and Machinery“. In the instant case, Slides are fastened to the Steel and Civil Structure are affixied to the Earth through these Steel and Civil Structure. Therefore, these Steel and Civil Structure shall form a part of Plant and Machinery. Accordingly, the credit of Tax paid on Input goods and services used in construction of this support structure shall be available.

3. It has been stated that for Wave Pool, Machines have been installed. The foundation for these machines are eligible to be part of the Machines and the ITC shall be treated in a manner similar to that of Machines. However, the Machine Room, which is a civil structure, erected for protecting machine is neither foundation nor civil structure for machine therefore, IT relatable to the construction of the room for Housing the machine shall not be eligible for ITC.

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Tags: Judgement, GSTAdvance Ruling

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