Works contract service - Practical Difficulties

962 views 3 replies

CA Yogesh

Sr. Executive (F&A)

213 Points Joined August 2008

Dear All,

Please suggest Whether following can be treated as "WORKS CONTRACT SERVICE"...?? Need Expert Opinion in following practical cases....

1. Pest Control Services taken in the business Premises

2. Painting Services for the business premises (including all Plants).

3. Toner Refiling for Office Printers.

In all the above services, Material Element will always be there but if we consider all services provided with material then all Services (except Manpower Supply & few) will fall under Works Contract.

Also, please suggest "Is there any simple way to decide whether any particular Service falls under Works Contract???"

Replies (3)

CS Shraddha G. Kulkarni

Practising Company Secretary

38 Points Joined July 2011

Wrongly posted my query under this topic, but don't know how to delete the reply.

Sorry!

shivani

consultant

122 Points Joined January 2009

Invoice comprise both Material+ labour

Keep account of Material consumed from stock and charge VAT

Difference is our labour charges and collect service tax

adopt 70:30 or 60:40 and charge accordingly

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

classification of service proded is dependent on the service provider

for all three cases, if the service provider is issuing you vat bills also for materials, then it would be taken in works contract, but most of such providers are very small, and they dont want to litigate with vat and service tax, so they go for service tax only, and dont go for vat litigation( as in case of wct vat and st both are chargable)