Sub-contract on piece work - without material-wct

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2018 We engaged sub-contractor on piece work basis without material and paid service tax on un regd contractors under WCT reverse tax mechanism.

Whether this will come under WCT- other constructin services or Man power supply ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 August 2018 As payment is on piece rate basis it will fall under works contract.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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08 August 2018 Since the sub-contractor is rendering pure labour services with no transfer of material it cannot be a works contract as per Section 2(119) of the CGST Act.

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