Works contract

The works contract service is a taxable service which is defined under clause zzzza of section 65(105) of the Finance Act, 1994, ‘as any service provided or to be provided to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams’. 

1) Based on above defination, For all works contracts RCM is applicable Except works contract for  roads, airports, railways, transport terminals, bridges, tunnels and dams’.  

2) But the Service provider should be Individual, HUF, proprietary, partnership firm, AOP      And Service Receiver Should be Business entity registered as body corporate then on RCM is applicable for Works contract.