Earth work excavation- is it a works contract?

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Does Earth Work and Excavation fall under the definition of Works Contract for the purpose of levy of service tax? If yes is reverse charge applicable on the same?

Replies (2)
Please PM your mail address, so that I will share my view point with you on above situation.

Hi Divya,

Any contract would only be a WCT when there is transfer of title in goods; meaning goods must also be passed on from the contractor.

As far as my understanding is concerned, the excavation may not be a WCT, as there is no transfer of goods involved in this contract.

Still go through the contract terms carefully.


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