Plz explain of a contract worker can avail ITC of building materials ? Can a real estate builder avail ITC of building material? Can a contract worker avail ITC of vehicle purchased for utilising it in his building work.
- A contractor can avail the ITC on purchase of materials i.e. bricks, cement, steel, sand etc. provided he is also providing works contract services.
- No ITC is available on purchase of motor vehicle. Also no ITC is available on repair & maintenance, insurance of such vehicle.
Dear Sir,
Hope you are doing well !!
- ITC for works contract can be availed only by one who is in the same line of business and is using such services received for further supply of works contract service (in the form of labour and raw material namely steel, cement, bricks, etc).
-No, a contract worker can not avail ITC of vehicle purchased for utilising it in his building work.
Yes a contractor/ builder can take credit of building materials but cannot take credit of vehicles
Yes, a real estate builder can avail ITC of building material but cannot avail ITC of vehicle purchased.
However, if the builder wants to charge GST at new concessional rates, he can't avail any ITC
