Works contract ?

The above arrangement does not satisfy the defination of "works contract" as per section 65B(54) of the finance act,1994 which says "works contract means a contract wherein transfer in property in goods involved in execution of such contract is leviable to tax as sale of goods and 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 or for carrying out any similar activity or a part thereof in relation to such property."

So, the company is not liable to pay service tax on reverse charge basis.

Thank you Sir