Summarised scheme
for Works contract Service
Sec 65B(54)
Works
contract means-
Where transfer
of property in goods in contract is leviable to tax as sale of goods
And
Contract is for
purpose of carrying out:
·
Construction
·
Erection
·
Commissioning
·
Installation
·
Completion
·
Fitting
out
·
Repair
·
Maintenance
·
Renovation
·
Alteration OR
For carrying out
any other similar activity or a part thereof
OF
Any Immovable or
Movable Property.
Declared
Services U/S 66E(h)
o
Service portion in execution of a Works
Contract
Mega
Exemption Notifications 25/2012
Entry No.
|
Service
Receiver/user
|
Service nature
|
Service in
relation to
|
12
|
Government or local Authority
|
Construction,
erection, commissioning, installation, completion, fittingout, repair,
maintenance, renovation or Alteration
|
1. Civil
Structure or any other original work- other than for commerce, industry or
any other business or profession.
|
2. Historical
buildings etc.
|
|||
3. Structure
for Educational, Clinical, or art or cultural establishment
|
|||
4. Canal Dam
or irrigation work
|
|||
5. pipeline,
conduit or plant for- water supply, water treatment or sewerage treatment or
disposal
|
|||
6. residential
complex for self use or for employees
|
|||
13
|
In use of General public
|
Same
as above
|
1. Road,
bridge, tunnel, terminal for road transportation.
|
2. civil
structure or other original work under JNU scheme or RA yojana.
|
|||
3. building
owned by registered entity u/s 12AA of i.tax act used for religious purpose.
|
|||
4. pollution
control or effluent treatment plant, except located as a part of factory or a
structure for funeral, burial, cremation.
|
|||
14
|
Any
|
Construction,
erection, commissioning, installation of original works
|
1. Airport,
port, railways including metro & mono rail
|
2. Single
residential unit other than as a part of complex
|
|||
3. low cost
house up to carpet area 60sq. Meter under Govt. Scheme
|
|||
4. Post harvest
storage infrastructure for agricultural produce including cold storage
|
|||
5. mechanised
food grains handling system, machinery or equipment for units processing
agricultural produce excluding alcoholic beverages.
|
|||
29(h)
|
Contractor
|
Works
contract when provided by sub-contracor
|
Exempt works
contract services.
|
Service
Tax (Determination of value of services) Rules, 2006
o
Rule 2A(i) Manner of determination of
the value of service in a works contract
o
Rule 2A(ii) Abatements available for
works contract & original works contract in case value of service is not
separately determinable.
Notification
26/2012 (Abatement)
o
Services of construction of a complex,
building etc intended for a sale to a buyer- service tax payable on 25% value.
Notification
30/2012 (Reverse Charge)
o
In respect of services provided or
agreed to be provided by way of works contract by an individual, HUF,
Partnership firm, AOP to body corporate in a taxable territory 50% by recipient
and 50% by provider.
and in case of provided by GOVT. To Business entity, 100% by recipient.
and in case of provided by GOVT. To Business entity, 100% by recipient.
Place
of Provision of service rules, 2012
o
Rule 4. Performance based services
o
Rule 5 Services related to immovable
property.
___________________________________________________________________________
For suggestions and feedback please feel free
to contact us via e-mail; dhruvjain1987@yahoo.co.in or you can log on to our website: http://dhruvjainassociates.in/contact
___________________________________________________________________________________
This blog is the property of Dhruv Jain & Associates. Any form
of reproduction, dissemination, copying, disclosure, modification, distribution
and/or publication of the content of blog or of the blog itself without the prior written consent of the
author of this blog is strictly prohibited and doing so will attract legal
proceedings. Any views or opinions presented in this blog post are solely those
of the author and for informative purpose only and should not be treated /used
as guiding rule or professional consultancy in any case. The matter of
discussion is highly sensitive to the amendments made by the government under
various laws and may not be updated as per the changes. Readers are suggested
to take prior professional consultancy of experts before using the blog or its
material in any way.
_____________________________________________________________________________________________
VERY INFORMATIVE
ReplyDelete