Work contract tax

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2013 sir/madam
my client is engaged in taking work contracts from banks and other semi governmental institutions by doing interior furnishing,electrification,amc work, etc of new and existing branches
my question is
whether in such firm
(1)chhattisgarh vat shall be applicable
or
(2)service tax shall be applicable

ON
WORKS CONTRACTS

Ganeshbabu K

Ganeshbabu K (Expert)
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16 June 2013 Service tax will be applicable:-

if Service receiver is :Business entity registered as body corporate located in the taxable territory

If service provider is :Individual, HUF, proprietary or partnership firm, AOP located in taxable territory

1) in case of comprehensive maintenance contracts like AMC, it is a composite contract and intention of parties is not to treat the supply of material and provision of service as two separate contracts. In such cases, it will be a ‘works contract’.

2)Remaining also coming under definition of work contract as per section 65B(54) of Finance Act, 1994 as introduced w.e.f. 1-7-2012.

Thanks & regards
Ganesh babu k

Ganeshbabu K

Ganeshbabu K (Expert)
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16 June 2013 VAT applicability is depends on your state vat act..generally it may be applicable..
as per cst act your work comes under definition of work contract.

Section 2(ja) of Central Sales Tax Act defines ‘works contract’ as follows – ‘Works contract’ means a contract for carrying out any work which includes assembling, construction, building, altering, manufacturing, processing, fabricating, erection, installation, fitting out, improvement, repair or commissioning of any movable or immovable property.

Thanks & regards
Ganesh babu k

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