Construction or renovation of plant or building

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Querist : Anonymous

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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.


05 December 2016 As material is involved in the works it is a works contract.
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.


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