Work Contract Service in GST
Query (Issue) Started By: – Vishnu Dutt Gupta Dated:- 11-4-2017 Last Reply Date:- 24-4-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Sir,
\nEarlier definition of work contract service is : works contract” 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 movable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property.
\nNow in GST : only contracts related to immovable pr<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of the above Act stipulates that "works contract as defined in clause (119) of section 2 and supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Work Contract Service in GST Query (Issue) Started By: – Vishnu Dutt Gupta Dated:- 11-4-2017 Last Reply Date:- 24-4-2017 Goods and Services Tax – GSTGot 4 RepliesGSTDear Sir, Earlier definition of work contract service is : works contract” means a contract wherein transfer of property in goods involved in the execution of such contract is … Continue reading “Work Contract Service in GST”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-3246","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/3246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3246"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/3246\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n Since movable property is not included in the definition of works contract, in respect of movable properties supply of spare parts will be treated as supply of goods and the service portion will be treated as supply of service. This is my opinion.
\nReply By MARIAPPAN GOVINDARAJAN:
\nThe Reply:
\nThe views of Shri Vishnu is correct on the interpretat<\/p>\n
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\nJaiprakash Ruia
\nReply By Govind Gupta:
\nThe Reply:
\nHello Sir
\nWe also have AMC business and there are basically two types of AMC, one which is normal AMC, where only services are rendered and one which is comprehensive which involves both labour and parts, the AMC is for Chillers ( large HVAC equipments which are fitted into building, not sure even though these are classified as Plant & Machinary whether these falls under moveable or immoveble property,
\nIn present tax scenario, both vat and service tax is paid on the fixed value ( not 100%) comprehensive AMC invoicing ( cascading impact and issues on input credit at our customer end), under the GST law, how the treatment will change considering the definition of work contract tax and <\/p>\n
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