Work contract service

This query is : Resolved

ATUL GAUR (Querist)
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31 October 2012 Dear Sir,
My query is with regard to WORK CONTRACT SERVICE wherein service receiver (SR) is having ST Registration No. and he intends to give oral labour contract to unskilled labour (an individual) eg. Spreading of manure in the agricultural field and afterward the cultivation of land with his tractor. Service receiver makes the payment in cash & without bill. In this case, work contract service will be applicable?
Regards Atul Gaur

CA Sahil Singla..

CA Sahil Singla.. (Expert)
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31 October 2012 Works contaract means a contract involving sale of goods as well as provision of services. Both are necessary. In your case, since no goods are sold, so it is not works contract, not liable to service tax as far as service receiver is concerned.