Definition of work contracts

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Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 I am confused about the first the definition of Work Contract which says "a contract in which transfer of property in goods involves Tax as sale of goods"
Now My question is whether it Transfer of property is necessary for a Work Contract.

Then how only repair work will come under the definition of Work Contract

Ganeshbabu K

Ganeshbabu K (Expert)
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03 July 2013 For purpose of service tax, the term ‘works contract’ has been defined as follows -

1)“Works contract” means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any movable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property

– section 65B(54) of Finance Act, 1994 as introduced w.e.f. 1-7-2012.

Thanks & regards
Ganesh babu k

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