Urgent service tax on work contract

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2016 there is a AMC of 3 years of Park provided by proprietorship to body corporate.In this case material i.e. plants, fertilizes are provided with maintenance service. Plants and fertilizer are exempted in vat. As per definition of work contract
(i) There is a transfer of property in goods involved in the execution of such contract, and

(ii) Such transfer of property in goods is leviable to tax as sale of goods (such as sales tax, VAT or WCT,).

As here material is exempted from vat so whether it comes under work contract service?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 February 2016 It is covered under works contract service.

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2016 thanks
but as per definition of work contract , transfer of property in goods is leviable to tax as sale of goods. In this case plants are material which are not leviable to tax.
Still it comes under work contract service?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 February 2016 The materials supplied are exempted from VAT hence classifiable under works contract service.

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