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Works contract on mezzanine flooring

This query is : Resolved 

16 December 2014 The contract involves fitting of mezzanine flooring in a factory of the assessee( Company). The vendor has charged VAT on the whole value. However, the works contract definition (w.r.t service tax) includes the word 'fitting out'. So, is the assessee company liable to pay service tax under reverse charge mechanism, treating the above as a works contract( by determining the service portion as per the valuation rules), since there is a labour portion involved in the fitting of the mezzanine flooring?

16 December 2014 Yes the assessee company is liable to pay service tax under reverse charge mechanism.


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