Tax Paid on Procurement of Goods/Services for Installation of Chillers, AHU, Lifts, WTP, STP, MLCP, CCTV, etc. is regarded as Blocked Credits: AAAR [Read Order]

The Karnataka Appellate Authority for Advance Ruling (AAAR) upheld the order passed by the Authority of Advance Ruling (AAR) on the tax paid on procurement of goods or services for installation of chillers, Air Handling Unit (AHU), lifts, Water Treatment Plant (WTP), Sewage Treatment Plant (STP), Mechanical Car Park (MLCP), Indoor or outdoor Surveillance System (CCTV), etc. is regarded as blocked credits.

In an appeal made to the Karnataka Appellate Authority for Advance Ruling (AAAR) upheld the order passed by the Authority of Advance Ruling (AAR).

The applicant, M/s Tarun Realtors Pvt. Ltd. is developing a mall named ‘Mantri Arena Mall’ which will include a hypermarket, multiplex cinema theatre complex, food courts, and various stores. The applicant entered into various lease agreements with their service recipients. Amongst other goods and services the applicant has procured goods and services for the installation of chillers, lifts, escalators, travelator, Water Treatment Plant (WTP), Sewage Treatment Plant (STP), Mechanical Car Park (MLCP), Indoor or outdoor Surveillance System (CCTV), DG set, transformers, electronic wiring and fixtures, Public Health Engineering (PHE), fire-fighting and water management pump system.

The applicant sought advance ruling on the issue of whether the tax paid on procurement of goods or services for installation of chillers, Air Handling Unit (AHU), lifts, Water Treatment Plant (WTP), Sewage Treatment Plant (STP), Mechanical Car Park (MLCP), Indoor or outdoor Surveillance System (CCTV), etc. is regarded as blocked credits or not?

The Karnataka Appellate Authority for Advance Ruling (AAAR) consisting of members D.P. Nagendra Kumar and M.S. Srikar upheld the order passed by the Authority of Advance Ruling (AAR) on the tax paid on procurement of goods or services for installation of chillers, Air Handling Unit (AHU), lifts, Water Treatment Plant (WTP), Sewage Treatment Plant (STP), Mechanical Car Park (MLCP), Indoor or outdoor Surveillance System (CCTV), etc. is regarded as blocked credits.