Works contract services

This query is : Resolved

SADHASIVAM (Querist)
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05 October 2012 We are manufacturer exporter.

We usually send computer, printers and its accessories for servicing purpose and while servicing service provider may replace some of defective components and raise bill on us.

We want to know whether this service comes under works contract service and it will be covered under reverse charge mechanism.

regards

Sadhasivam C.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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05 October 2012 If there trasfer of property in goods involved in such contract then no doubt it will be covered under the definition of works contract.
So, in your case it is a works contract service and reverse charge would apply only when you are not a body corporate and service provider is a company.