19 January 2010
1 Works contract-it is a contract for service in which contractor give instruction to do work according to his requirement. It can be only for services or services with some material with specific work done on it also. On the other hand in labour contract contractor got only labour work not supply of goods. So works contract is a wide defination which comprises labour contract also. 2 Service Tax is charged on both 3 Sec 194C is applicable on it in both cases TDS will be deducted.
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