Authority for Advance Ruling —ITC on Civil and Interior works in a building which is rented out – The Applicant is engaged in the business of constructing commercial complex, renovation, fabrication, furnishing and built out interiors works of the building for the purpose of letting to different tenants on rental basis. The applicant sought an advance ruling as to whether the Applicant is eligible to take ITC in relation to expenditure incurred for 'Civil and Interior Works' in building at different floors, since the said property is further used for letting out to different tenants on rental basis viz. for furtherance of business; whether ITC on construction of commercial complex, will be available to Applicant in case the said building is used for the purpose renting out. The authority observed that clause (c) and (d) of section 17(5) restricts ITC in respect of works contract services and goods or services used towards construction of immovable property. As such, ITC in relation to 'civil and interior works' is not admissible.

Held that:- The Hon’ble Authority for Advance Ruling replied in negative to both  the questions.