Water proofing

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Aarti Bhanushali (Querist)
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23 September 2011 Water Proofing will be covered under which category for service tax?

1.Works Contact
2.Management, Maintenance or Service
3.Construction of Complex Service.
4.Commercial and industrial Construction.

Pragnesh

Pragnesh (Expert)
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23 September 2011 You have not given all the details, water proofing will cover in any of the category for e.g.

1 : If contractor is providing material and service to the client, and obtaining composit scheme then it is cover works contract.

2. If it purely maintenance or renovation works which ask by client and it cover only service then it comes under Management, Maintenance or service.

3. If it part of contruction of complex which build by builder then it cover under contruction of Com. service.

4. If it is part of contruction of factory or industrial contruction which is build by builder then it is cover under Commercial and ind. construction.

To confirm category pls. provide addtional detail o service provided to receipient.

Aarti Bhanushali

Aarti Bhanushali (Querist)
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24 September 2011 Thanks

Well the Service Provider is a Pvt Ltd co. and the Service Receivers are the Residential and Commercial Complex.

The Service provided is water proofing which is done at the Ceilings of the Complex's.
As per ur reply, i purely feel it Shall come under Works Contract.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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03 August 2025 You're on the right track! Here’s a clear breakdown for waterproofing services under Service Tax (pre-GST context):
Classification of Waterproofing Services under Service Tax:
Works Contract Service:
If the waterproofing involves both supply of material and labor (service) and is part of a contract to do a job on immovable property, it is considered a works contract.
This is the most common classification for waterproofing done on ceilings, roofs, etc., especially when the service provider supplies materials.
The composite scheme under works contract will apply here.
Management, Maintenance, or Repair (MMR) Service:
If waterproofing is provided only as a service without supply of material, and it is for maintenance or repair (like fixing leakages), it may fall under this category.
Generally applicable when the client already owns the property and only requests service (without new construction or major renovation).
Construction of Complex Service:
Applies if waterproofing is part of the construction of a new residential or commercial complex by the builder.
If your company is acting as a builder or developer, waterproofing included in the construction contract would fall here.
Commercial or Industrial Construction Service:
If waterproofing is part of construction of a factory, industrial plant, or commercial building, it is classified here.
Usually for large-scale industrial or commercial projects.
Based on your details:
Service provider: Private Ltd company
Service receivers: Residential and commercial complexes
Nature of service: Waterproofing on ceilings
Conclusion:
If your Pvt Ltd company is providing waterproofing with materials and labor as a contract job for these complexes, it will be categorized as Works Contract Service.
Why Works Contract?
Waterproofing is a process involving material (waterproofing chemicals, membranes, etc.) and service (application).
The job is done on immovable property.
It's neither just maintenance nor new construction by builder/developer but repair/renovation type work.
Hence, works contract fits best.

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