Service tax under which head?

This query is : Open

SIJU VARGHESE (Querist)
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26 July 2016 Dear Sir,

A Contractor is doing some fabrication works like Handrail, Gate etc.in a Residential Complex.
Under which head he has to take Service Tax Regn? He is doing labour contract works and works contract.

As per my knowledge, Labour Contract should be under "Erection, Commissioning and Installation Service" , and Works Contract under "Works Contract Service".

But I'am confused with the definition of 'Construction of Complex', in which all finishing works also will be included under this head.

(i) “Construction of Complex” means —
(a) construction of a new residential complex or a part thereof; or
(b) completion and finishing services in relation to residential complex such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services; or
(c) repair, alteration, renovation or restoration of, or similar services in relation to, residential complex;
(Section 65(30a) of the Finance Act, 1994)

Please reply

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Expert)
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26 July 2016 It seems that the contractor is himself fabricating, supplying & fitting said hand rails, gates & other items in residential complex. The property in said goods (handrails, gates etc) passes to buyer in course of above work. It involves both (supply & labour) In my view it is clearly covered u/s 66E (declared services) as Works Contract Service. Regarding question who has to deposit tax & in which proportion, the status of service provider & service receiver is to be seen.

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SIJU VARGHESE

SIJU VARGHESE (Querist)
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26 July 2016 Thanks for your reply sir.

Sir, the party is doing both labour contract without supplying any material and also doing works contract by supplying materials.
He is doing contract work for builders and also for flat owners directly.

I just want to confirm,

1. Whether the Work including supply of material comes under "Construction of Residential Complex" or "Works Contract" Service? and
2. Whether the work without including supply of material comes under "Erection, Commissioning, and Installation" or under any other head?

Once again thanks for spending your valuable time.

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