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works contract

Praveen Singh (article) (69 Points)

18 July 2017

works Contact has. been classified as service in GST law.
so, if a person is providing works contact services to others then can he use his input credit available on procurement of goods to pay the GST liability on provinding Work contact services ? or he can only use input services to pay GST liability on work contact service!

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 18 July 2017

He can avail ITC over both input services as well as input goods.........

Sandeep Upadhyay (1518 Points)
Replied 18 July 2017

ITC not availed in work contract

Praveen Singh (article) (69 Points)
Replied 18 July 2017

sandeep ITC is not available in that case where is receive Work Contract services as input. Here i am talking about a person who providing work contract services

RAJU (LEARNER) (1089 Points)
Replied 18 July 2017

Eligible for credit of input tax paid for Services, Goods as well as Capital goods.

Sandeep Upadhyay (1518 Points)
Replied 18 July 2017

@ raju,dhirajlal,praveen (107) ”works contract” means an agreement for carrying out for cash, deferred payment or other valuable consideration, building, construction, fabrication, erection, installation, fitting out, improvement, modification, repair, renovation or commissioning of any moveable or immovable propert

Sandeep Upadhyay (1518 Points)
Replied 18 July 2017

@ raju,dhirajlal, praveen in 107 work contract Section 16(9) provides that Input tax credit shall not be available for the following in relation to works contract: (c) goods and/or services acquired by the principal in the execution of works contract when such contract results in construction of immovable property, other than plant and machinery; (d) goods acquired by a principal, the property in which is not transferred (whether as goods or in some other form) to any other person, which are used in the construction of immovable property, other than plant and machinery;

RAJU (LEARNER) (1089 Points)
Replied 19 July 2017

From what I understand from the query is that whether a person providing works contract services is eligible to claim tax paid on Input services, goods. Yes he is eligible.