Why is WCT not applicable on Audit Contract can audit report provided by auditor after completion of audit be considered as transfer of goods or audit expertise be regarded as intellectual property transfered ?
P.S. mention sections of the Act if you can thank you.
Dominance and intention of the contract should be seen. You please read BSNL supereme court case law.
| Originally posted by : Abhishek Bose | ||
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Why is WCT not applicable on Audit Contract can audit report provided by auditor after completion of audit be considered as transfer of goods or audit expertise be regarded as intellectual property transfered ? P.S. mention sections of the Act if you can thank you. |
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Works contract is applicable only to movable or immovable property on which the value addition can be performed and the ownership of property does not change in works contract only value addition is happening. Audit Report was never the property of the Client. Hence service tax cannot be levied under the works contract.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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