Service tax on work contract services

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2013 My client has got the contract for construction of residential complex , on labour rate & consumables.

The company has deducted 50% service tax and claimed the above service under work contract service .

i want to know that pure labour contract + consumables comes under work contract services .

what will be the taxation procedure for contractor ( partnership firm)

CA Vikas Acharya

CA Vikas Acharya (Expert)
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29 June 2013 - Work Contract Meaning 65B(54): WC means a contract wherein transfer if property in goods involved in the 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 other activity or a part thereof in relation to such property.

SO IF CONSUMABLES ARE CHARGABLE TO VAT IT WILL BE TREATED AS WORK CONTRACT.
ALSO AS PER INDUSTRIAL PRACTICE THIS TYPE O F CONTRACT ARE UNDER WORK CONTRACT.

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2013 sir in this contract the main portion around 90% consist of labour charges and balance is for shuttering material . i am in doubt whether service came under construction of residential complex service without abatement or work contract service

as per industrial practice they called the labour rate

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