Work Contract Tax

Furniture supply with installation service cannot be construed as Works Contract

Goods and Services Tax - The taxpayer had charged GST at the rate of 18% on the supply and installation of furniture in the government department. However, the government department contention is that GST at the rate of 12% should be charged construing it as Work Contract Service...

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GST on Works Contract Services pertaining to Machinery for Processing of Agricultural Produce

Goods and Services Tax - GST on Works Contract Services Pertaining To Machinery For Processing of Agricultural Produce In an Application filed before AAR under GST, Gujarat by Magnam Netlink Private Limited  Applicants Submission: 1. Dairy plant will be processing raw milk obtained from the farmers and producing pasteurised milk as well as milk products there fr...

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Concept of job work under GST

Goods and Services Tax - Article explains Meaning of job work under GST Law, Classification of job-work transaction as supply of goods or service for GST, Treatment of job work transactions in GST in diffrect Scenarios i.e. (a. Supply of goods from Principal to Job worker & returned by job worker within specified time b. Supply of goods from Principal to Job work...

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GST: Is complications in the Works Contract resolved yet??

Goods and Services Tax - One of the most disputed or major areas of concern for both taxpayers and authorities in the earlier regime was ‘works contract’. In simple terms, it means a contract which has both the elements of good as well as service and which is undertaken for the construction etc of ‘immovable property’. Earlier this was the...

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All about GST on Works Contract and Work Contact Tax Rate

Goods and Services Tax - Article explains What is works contract,? Works contract - Goods or services?, Block ITC on Procurement Of Works Contract services?, Maintenance of accounts by registered person executing works contract and GST Rates for Works Contract....

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PHD Chamber’s Workshop on Audit, Investigation, Imprisonment & Customs – Drawback & Refund: Way Forward in GST

Goods and Services Tax - We are happy to inform that the Last Workshop in the above series is being organised on the following Themes: Audit, Investigation, Imprisonment and Power to Arrest provisions by multiple wings of Service Tax and Excise Department Customs – Drawback, Refund, and Imposition of various Customs duties and Implication of Import/ Export of G...

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‘Works Contract’ for fitting out any movable property into patient’s body in course of medical procedure was liable for VAT

MIOT Hospitals Ltd Vs State of Tamil Nadu (Madras High Court) - Works contract for fitting out or implanting of prosthetics into the physiology or the body of the patient for alleviation of pain or for improvement of the life of the patient in the course of medical/surgical procedure could be construed as 'works contract'  liable for VAT under the provisions of...

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Sales Tax applicable on Divisible Sales Component in Works Contract: SC

M/s. India Hume Pipe Co. Ltd Vs State of Rajasthan and Ors. (Supreme Court of India) - All these appeals are filed by the same appellant, namely, M/s. India Hume Pipe Co. Ltd. (hereinafter referred to as the assessee). The singular issue that arises is also identical in all these appeals. The only reason for filing number of appeals is that the said issue pertains to different Assessm...

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Recent Posts in "Work Contract Tax"

Furniture supply with installation service cannot be construed as Works Contract

The taxpayer had charged GST at the rate of 18% on the supply and installation of furniture in the government department. However, the government department contention is that GST at the rate of 12% should be charged construing it as Work Contract Service...

Read More

GST on Works Contract Services pertaining to Machinery for Processing of Agricultural Produce

GST on Works Contract Services Pertaining To Machinery For Processing of Agricultural Produce In an Application filed before AAR under GST, Gujarat by Magnam Netlink Private Limited  Applicants Submission: 1. Dairy plant will be processing raw milk obtained from the farmers and producing pasteurised milk as well as milk products there fr...

Read More

‘Works Contract’ for fitting out any movable property into patient’s body in course of medical procedure was liable for VAT

MIOT Hospitals Ltd Vs State of Tamil Nadu (Madras High Court)

Works contract for fitting out or implanting of prosthetics into the physiology or the body of the patient for alleviation of pain or for improvement of the life of the patient in the course of medical/surgical procedure could be construed as 'works contract'  liable for VAT under the provisions of the Tamil Nadu Value Added Tax  Act, 2...

Read More

Concept of job work under GST

Article explains Meaning of job work under GST Law, Classification of job-work transaction as supply of goods or service for GST, Treatment of job work transactions in GST in diffrect Scenarios i.e. (a. Supply of goods from Principal to Job worker & returned by job worker within specified time b. Supply of goods from Principal to Job work...

Read More

GST: Is complications in the Works Contract resolved yet??

One of the most disputed or major areas of concern for both taxpayers and authorities in the earlier regime was ‘works contract’. In simple terms, it means a contract which has both the elements of good as well as service and which is undertaken for the construction etc of ‘immovable property’. Earlier this was the...

Read More

All about GST on Works Contract and Work Contact Tax Rate

Article explains What is works contract,? Works contract - Goods or services?, Block ITC on Procurement Of Works Contract services?, Maintenance of accounts by registered person executing works contract and GST Rates for Works Contract....

Read More

Sales Tax applicable on Divisible Sales Component in Works Contract: SC

M/s. India Hume Pipe Co. Ltd Vs State of Rajasthan and Ors. (Supreme Court of India)

All these appeals are filed by the same appellant, namely, M/s. India Hume Pipe Co. Ltd. (hereinafter referred to as the assessee). The singular issue that arises is also identical in all these appeals. The only reason for filing number of appeals is that the said issue pertains to different Assessment Years....

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Goods imported/ purchased inter-State used in Works contract, would be exempt from VAT

Commissioner, Delhi Value Added Tax Vs. M/s. ABB Ltd. (Supreme Court)

Whether the movement of goods in pursuance of Works contract constituted inter-State trade as well as sale/ purchase in the course of import, covered by Section 3(a) and Section 5(2) of the Central Sales Tax Act, 1956 and thus, exempt under the Delhi Value Added Tax Act, 2004....

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Service Tax on Work Contract

1. There is a transfer of property in goods involved in the execution of such contract, and 2. Such transfer of property in goods is leviable to tax as sale of goods (such as sales tax, VAT or WCT, etc.). It must be noted that the words which are used here are leviable to tax as sale of goods’, therefore, it is not necessary that VAT ha...

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PHD Chamber’s Workshop on Audit, Investigation, Imprisonment & Customs – Drawback & Refund: Way Forward in GST

We are happy to inform that the Last Workshop in the above series is being organised on the following Themes: Audit, Investigation, Imprisonment and Power to Arrest provisions by multiple wings of Service Tax and Excise Department Customs – Drawback, Refund, and Imposition of various Customs duties and Implication of Import/ Export of G...

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Works contract service – Free issue of material by Service Receiver

The works contract service has always been a subject matter of debate or discussion, either in computation of tax under VAT Act or under Service Tax Act and more importantly after the introduction of reverse charge mechanism, where both service provider and service recipient is the person liable to pay tax. In this article I […]...

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TDS on Work Contract (WCT TDS) – MVAT

A works contract is an agreement which is a mixture of service or labour and transfer of goods. Under a works contract the contractor agrees to do certain job in execution whereof, certain goods are transferred to the contractee. Thus, an agreement of building construction, manufacture, processing, fabrication, erection, installation, re...

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Valuation Under Works Contract Service

Primary Condition for classifying the service under works contract is that the contract shall involve transfer of property in goods in executing such contract which should be leviable to tax as sale of goods. The contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, impro...

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Works Contract- VAT Obligations & VAT on Builders In Rajasthan

'works contract' means a contract for carrying out any work which includes assembling, construction, building, altering, manufacturing, processing, fabricating, erection, installation, fitting out, improvement, repair or commissioning of any movable or immovable property. ...

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Evolution of Works Contract Tax (WCT)

This article is basically written to give you understanding of evolution of works contract tax in India and its entire journey from beginning till date. Before I take you into the mid of ocean we have to first understand that why the need arises of introduction of works contact tax and its respective calculation methods. ...

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Work Contractor and Rajasthan VAT

CA Ram Bajaj Method of Calculating the Tax liability of VAT in Work Contract:- 1. Exemption Fee Method/Composition Method 2. VAT Method – 1 (Actual labour deduction) 3. VAT Method – 2 (Standard Labour Deduction) Exemption Fee Method /Composition Method – due to complexity of calculation of labour charges and other permissible deduct...

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Expenses incurred for erection & commissioning of lift & Refund by Builder to buyer of Flats – Tax Provisions

In this article, the author has enlightened the nature of expenses incurred for erection and commissioning of lift with regard to the purview of the expression works contract in accordance with the provisions of Andhra Pradesh General Sales Tax Act, 1957 & u/s 194C of the Income Tax Act, 1961 and the treatment of excess amount of refund p...

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Works Contract Service Notifications at Glance

Pradeep Sharma Works Contract Service Notifications at Glance: S. No. Notification No. Particulars Effective from Effective Till Amended by Notification No.  1 12/2003 20/06/2003 This notification provide exemption from service tax on equal value of goods and material transferred to recipient (restriction from cenvat and duty credit paid...

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Excise Duty on Job Work

Normally, if assessee is engaged in manufacturer on job work basis, he has to pay duty on material cost plus job charged. However, if a product covered under MRP provision is manufactured on job work basis, duty will be payable as per provisions of section 4A, i.e. on basis of MRP less abatement....

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No tax deduction on labour and service part of works contract under Punjab VAT

In an application u/s 85 of Punjab VAT Act, 2005 moved by me on behalf of my client, it has been held by the Excise and Taxation Commissioner, Punjab on 04-12-2013 that Judgment of Punjab & Haryana High Court in CWP 14797 of 2010 Larsen and Toubro vs. State of Haryana is binding on all concerned works contractors. ...

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Brief Note on Service Tax on Work Contract Service

fter the Finance Act 2012 enacted, Clause 54 of the newly introduced section 65B provides definition to works contract, which means, “a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection,...

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Revised Works contract composition provisions under Delhi VAT Act

CA Ankit Gulgulia (Jain) The Works contract composition provisions under Delhi VAT shall be significantly revamped w.e.f 1.4.2013. The details of Revised composition model under VAT is as detailed hereunder. Governing Statute for New Model Effectuated vide Notification No. 3(13)/Fin.(Rev-I)/2012-13/dsvi/180 dated 28th February,2013. This ...

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Service Tax on Works Contract where contract price Includes Applicable Taxes

It is very common practice in the construction or infrastructure related industries that the contract prices agreed between the parties are inclusive of taxes applicable on such construction/maintenance/repair/renovation or related activities. In such circumstances, the service provider can not levy service tax over and above the contract...

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Works Contract Services under Service Tax

Service tax under works contract services has been imposed on the service element involved in the works contracts. It should be noted that unlike VAT laws in various States service tax is applicable only on a fewer kinds of works contract as defined in section 65(105)(zzzza). Works contracts relating to Roads, Airports, railways, transpor...

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