Works contract tax

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vaithy (Querist)
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02 January 2014 Sir,

under the New service tax regime, reverse charge mechanism there will be a " Works contract Tax" Please any one clarify the following.

1. Works contract is it only work relating to Civil and civil related service ?

2.repair and maintenance of die and tools are coming under WCT ?

3. pure labour invioce other than subcontracting labour are cming under WCT ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 January 2014 1. Works contract covers work in relation to immovable property (new construction), repair & maintenance to immovable property & repair & maintenance to movable property.

2. Repair & maintenance of dies & tools will be covered under works contract.

3. Pure labour work is NOT covered under works contract. An activity will be termed as works contract only if it involves transfer of goods as well as provision of service.