PL GUIDE US....
IF WE PROVIDED MAINTANANCE SEVICE TO MOVABLE GOODS OR IMMOVABLE GOODS AND USED CONSUMABLES TO PROVIDE SERVICE....CAN IT BE FALLEN UNDER WORKS CONTRACT SERVICE OR NOT?
CONSUMABLES MEANS NUTS,BOLTS AND OIL ETC.......
MANI (Student) (35 Points)
07 November 2012PL GUIDE US....
IF WE PROVIDED MAINTANANCE SEVICE TO MOVABLE GOODS OR IMMOVABLE GOODS AND USED CONSUMABLES TO PROVIDE SERVICE....CAN IT BE FALLEN UNDER WORKS CONTRACT SERVICE OR NOT?
CONSUMABLES MEANS NUTS,BOLTS AND OIL ETC.......
DDDDDD
(.)
(176 Points)
Replied 11 November 2012
The provisions of Works contract tax is applicable only in cases where there is sale of goods and provision of service and both this sale and service is not seperable from each other.
Mere usage of some items for providing service cannot be considered as sale of goods.
Thus in your case works contract tax is not applicable.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 12 November 2012
In order to constitute works contract , there shall involve transfer of property in goods which are subject to VAT along with providing of service . Use of consumbles of meagre, value may not be liable to VAT and hence the same may not constitue WC.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
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