Dear Sir/s :
Vide Section 6 of Tamilnadu VAT Act, rate for Composition of Civil Works and Civil Maintenance Works Contract has been mentioned as 2% and for all other Works Contract tax it is 4%. Explanatory Note says that "For the purpose of this section "civil works contract" includes civil works of construction of new building, bridge, road, runway, dam or canal including any lining, tiling,painting or decorating which is an inherent part of the new construction and any repair,maintenance, improvement or upgradation of such civil works by means of fixing and laying of all kinds of floor tiles, mosaic tiles, slabs, stones, marbles, glazed tiles, painting, polishing, partition, wall panelling, interior decoration, false ceiling, carpeting and extra fittings, or any manner of improvement on an existing structure."
The Query being whether other Civil Works which are not specifically listed in the explanation above like Track Laying or Tunnelling or Piling for Jetty or docs or dry berth for cargo handling can also be termed as Civil Works Contract? The explanation given of Civil WOrks Contract appears more of an illustrative definitions which includes some general items but do not exclude certain other items.
CAclubindia
