Construction Service / Works Contract Sevice - Difference

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Manudeep Garg (Querist)

09 January 2009
In Total Services,, one service is of Construction of Commercal or Industrial Complex,, and also there is one service of Works Contract. Please tell me what is the difference between these twos?
My Client is Contractor for Civil Construction,, which one would be applicable on him?

BALU V

BALU V (Expert)

11 January 2009 These are different but interlinked services. Construction of commercial or industrial complex is a service by itself. But works contract is a service which basically revolves under a works contract. Those who are engaged in Construction of commerical or industrial complex, construction of complex and erection commissioning and installation service (CCS, CON and CAI) can OPT for payment of service tax under this service.

CA. C V SURYAM

CA. C V SURYAM (Expert)

12 January 2009 No question of opting WC category. Being a works contractor, your client must be paying the relevant State VAT (output VAT/WCT). Then automatically by virtue of Sec.65(105(zzzza) of FA 1994, your client falls under WC services category. Notification Nos.29/2007-ST or 32/2007-ST are to be followed.

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