Construction or renovation of plant or building
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 December 2016
Dear Experts,
I am working in a public limited company, We used to Repair or construction of plant or office building through contractor. We will pay the contractor on square feet basis on work done. here all the materials supplied by us and contractor is just working as per our instructions.
Contractor is not charging service tax since he has not crossed his trash-hold limit.
Transfer of goods means what ? (even material supplied by the service receiver is also considered as transfer of material)
Here my query is ..
Is this work comes under Works contract ? or can we call as jobwork..
Is Service tax is applicable.. ?
Please Guide us
Thanks in advance.
I am working in a public limited company, We used to Repair or construction of plant or office building through contractor. We will pay the contractor on square feet basis on work done. here all the materials supplied by us and contractor is just working as per our instructions.
Contractor is not charging service tax since he has not crossed his trash-hold limit.
Transfer of goods means what ? (even material supplied by the service receiver is also considered as transfer of material)
Here my query is ..
Is this work comes under Works contract ? or can we call as jobwork..
Is Service tax is applicable.. ?
Please Guide us
Thanks in advance.
CA R SEETHARAMAN
(Expert)
05 December 2016
As material is involved in the works it is a works contract.
Service tax payable under RCM on 50% value.
Service tax payable under RCM on 50% value.
07 December 2016
Under service tax, it can be classified as Works contract - repair works and 70 % of value of work will be subject to service tax.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- Rent agreement of House of deceased person
- IMS (import of goods) ITC related
- Gift to nri relatives resides in usa
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Form 144 TDS Return Validation error
- GST ITC as per notification 12/2023- central tax
- LLP audit and disclosure
- GSTR9 Annual Return
- Ito add credit side of bank
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
