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blocked credit 17(5)

Sunish (Freelance) (168 Points)

07 June 2018

what is the difference between 17(5)c and 17(5)D

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6 Replies

Vinit22 (pune) (31 Points)
Replied 07 June 2018

please elaborate your query.

Sunish (Freelance) (168 Points)
Replied 07 June 2018

17(5)c is about works contract so what's the nature of service in 17(5)d

Vinit22 (pune) (31 Points)
Replied 07 June 2018

17(5)d is when we for ourself construct say building and the material which we purchase for the construction will not be eligible for ITC.

Sunish (Freelance) (168 Points)
Replied 07 June 2018

can you confirm this illustration
say for example. I need to construct a building and take the service of a works contractor wherein the materials are procured by the works contractor himself - this falls in 17(5)c

case 2- I individually purchase materials on own account and I take services of a builder ( pure labour contract) this is 17(5)D

correct me if I'm wrong anywhere

CA Padmasri Manyam (CA in Practice) (1340 Points)
Replied 07 June 2018

Originally posted by : Sunish
	can you confirm this illustrationsay for example. I need to construct a building and take the service of a works contractor wherein the materials are procured by the works contractor himself - this falls in 17(5)c case 2- I individually purchase materials on own account and I take services of a builder ( pure labour contract) this is 17(5)Dcorrect me if I'm wrong anywhere

But 17(5)(d) say goods or services or both. So it can also include works contract services. The difference is procurement on his own account. Even i am not very clear what is the major difference between two.