Service tax on annual maintenance under wct

As per provisions of the Finance Act 2012, Works Contract Service is defined by Section 65B(54). As per the said section, Works Contract Service means:-

a) a Contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods; and

b) such Contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any movable or immovable property

If above mentioned two conditions are satisfied then only a contract will be treated as Works Contract and the provisions of the Finance Act 2012 will be applicable accordingly.

Therefore, please check whether above mentioned conditions are fulfilled in respect of contract for which you have doubt. If yes, then provisions of Service Tax as applicable to Works Contract Service will be applied. Otherwise, your service is out of the purview of Works Contract Service and other provisions will be applicable.

Hope this will resolve your problem.