What is the margin line which demarcates works contract serv

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Mukesh Katara (Querist)

03 December 2012 Query for the members ........... What is the margin line which demarcates Works Contract Service and Construction Service??? This query has been raised because both the mentioned service have the provision of construction of immovable property. An early reply from the members would be highly beneficial for me.

Thankx in advance

mukesh katara

Amol S Joglekar

Amol S Joglekar (Expert)

03 December 2012 Works contract service is at the instance of other person (Other than you). Construction service is at own's instance.

Mukesh Katara

Mukesh Katara (Querist)

04 December 2012 Dear Amol S Joglekar thanks for your valuable comments. Please evaluate this service and let me know whether it will fall under Works Contract Service or Construction Service.........My Client Mr. X is a builder and he has entered into contract with Mr. Y for construction of cold storage centre within the premises of Mr. Y. Now in which category will this service of construction of cold storage will fall ??? Mr. Y will pay the entire amount of material and service. Payment will be made on quaterly basis. Your detailed reply in this regard would be highly beneficial.

Amol S Joglekar

Amol S Joglekar (Expert)

04 December 2012 This will fall under service tax. He can claim abatement.

Mukesh Katara

Mukesh Katara (Querist)

04 December 2012 Dear MR.Amol Ji will fall under which service??

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