Service tax (rc) on works contract where no labour charged??

A company has entered ino a contract of supply and installation of equipment.

The contractor raises the bill  of supply as 100% material  and for installation the bill will be raised seperately.

My queries:

1. Will material bill be treated as WC bill or only supply bill.

2. WC(TDS) should be deducted from bill or no.

3. BCC cess has to be deducted or not.

Replies (2)
it should ne treated as only purchase-sale transaction and not as a work contract. tds is not to be deducted on this purchase bill.

Dear sir,

 

Since there is separate bill for supply of material and seperate bill for labour works the same needs to be construed as divisable contract.

Further, like this transaction documentation plays a vital role i.e having two separate work orders and payments also received seperately and not on % of completion of the contracts.

Accordingly, it may not be treated as "Works Contract" hence no liability under Service Tax.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 10 August 2026
Article Assistant

Suraj Garg and Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
14 August 2026
Semi Qualified

Goyanka & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details