Ans:
According to section 17(5)(c) on "Works contract services when supplied for construction of an immovable property, other than plant and machinery, except where it is an input service for further supply of works contract," the ITC is disallowed.
The ITC does not apply to Plant and Machinery, even if they are immovable property plants. The central air conditioner consists of chilling units mounted outside the wall, on the roof, or the ground, and fans and ducting attached to the walls or ceiling.
It qualifies for ITC even if a machinery section is embedded in the ground or attached to immovable property. Because of this, a central air conditioning system qualifies for an ITC.