Goods and Services Tax : Treating all works contracts as services at 18% ignores their composite nature. The key takeaway is that uniform taxation can pena...
Corporate Law : In this piece, the author will discuss the reasoning behind the exclusion of work contracts from the ambit of MSME along with the ...
Goods and Services Tax : Attempting to understand if there is a refund of unutilised ITC on Works Contract for Construction Services under the GST regime? ...
Goods and Services Tax : Stay updated on GST changes effective July 18, 2022, including revised rates for Works Contract Services. Explore amendments to Re...
Income Tax : Understanding Income Tax implications in unregistered Joint Development Agreements (JDA). Explore the tax challenges pre-Finance A...
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...
Goods and Services Tax : Karnataka High Court's ruling on Prime Location Charges (PLC) and Floor Rise Charges (FRC) under KVAT Act, their exemption from ta...
Goods and Services Tax : Since the question of whether the transactions in issue constitute works contracts or sales would involve an examination of the co...
Service Tax : CESTAT held that no Service Tax could be levied on construction of residential complexes prior to 01.07.2010 even when service is ...
Service Tax : Ram Sewak Tiwari Vs Commissioner of Customs, Central Excise & Central GST (CESTAT Delhi) The issue in the matter is about the ...
Goods and Services Tax : Works contract for fitting out or implanting of prosthetics into the physiology or the body of the patient for alleviation of pain...
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, repair or commissioning of any movable or immovable property, is a works contract.
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, improvement, repair, renovation, alteration of any movable or immovable property.
‘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.
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.
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 deduction under vat […]
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 paid by the builder to the buyers of flats, in case no allotment of flat is made by the builder to such buyers,
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 on such goods) 01/07/2014 30/06/2012 35/2012 2 […]
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.
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.
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, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any moveable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property;
