30 August 2010
My Client is a printer who gets the order from the publisher for the printing of books and forms. They purchase papers, ink etc. as their input materials and provide the labour and other services for the printing jobs. They are not liable for Excise Duty since they are not manufacturer. They paid Local VAT on supply of paper i.e on theirsupply of material. They are not paying any service tax since in Business Auxilary service there is an exemption. Now, since from 01.06.2007, Work Contract Tax is brought into effect, will their activity in relation to supply of survice will be taxable under work contract? If "YES" on what basis? If "No" why not?
The definition of Works Contract Tax is pretty much limited to EPC contracts like turnkey projects, laying of pipeline etc. All these are heavy engineering works and not small regular work like printing etc.
All this is for Service Tax purposes only.
So, in no manner you can cover Printing under Works Contract Tax.
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