WORK CONTRACT

Supply of AC along with installation service to govt. is covered under work contract ???
if yes, then what is the Rate of tax?
Replies (7)
It's depend whether you have received the same on the basis of tender or only got P. O.
IF AGREEMENT you follow agreement or if P. O. just follow the earlier process.
2(119) defines works contract as ‘specified work’ done on an immovable property. In your case, AC is not an immovable property. Hence it cannot be treated as a works contract.
@ Maneet thank you for correcting me😃
but, after installation of AC it will be treated as immovable property..!
@ Mohit what was done? Agreement or P. O. and whether contract done or not?
tender received from police station.
No Ac is not cover under the Work Contract defination , As per the defination under section 2(119) its related to Immovable property. So its become a part of Immovable property .

@ Dear Mohit

Cental ExciseOrders Under Section 37B of Central Excise Tariff
Section 37B Order No. 58/1/2002 - CX,
F.NO. 154/26/99 - CX4
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
15th January, 2002

Refrigeration/Air conditioning plants . These are basically systems comprising of compressors, ducting, pipings, insulators and sometimes cooling towers etc. They are in the nature of systems and are not machines as a whole. They come into existence only by assembly and connection of various components and parts. Though each component is dutiable, the refrigeration/air conditioning system as a whole cannot be considered to be excisable goods. Air conditioning units, however, would continue to remain dutiable as per the Central Excise Tariff.

AS To above reference if AC (centralised) with ductable fitting is installed in building is treated as immovable , so can be cover under the works contract ,& can be charge 18% , to govt. 12%

But if it is not centralised Ac System (Ducting) Then it not covers under Work contract

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