CA girl (Article Trainee-CA Final) (1942 Points)
12 February 2014Does Earth Work and Excavation fall under the definition of Works Contract for the purpose of levy of service tax? If yes is reverse charge applicable on the same?
VIKASH KUMAR JAIN
(Audit Executive)
(711 Points)
Replied 12 February 2014
Vikas
(CA)
(1135 Points)
Replied 12 February 2014
Hi Divya,
Any contract would only be a WCT when there is transfer of title in goods; meaning goods must also be passed on from the contractor.
As far as my understanding is concerned, the excavation may not be a WCT, as there is no transfer of goods involved in this contract.
Still go through the contract terms carefully.
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