Works Contract

This query is : Resolved 

28 February 2009 I want to know that why is VAT applicable on works contracts not service tax, though work contractors provide service not sale goods???????

Regards,
Nitin panthri
(nitinpanthri@yahoo.com)

06 March 2009 labour only contracts are not works contracts so they are type of service & hence service tax is chargeable on then under business auillary services. job work

however contracts under which even some goods are transferred like dyes, paints etc. then it is like manufacturing involving some material & some labour so WCT is chargeale



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