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Q. > Please Help: Works Contract Service
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438 views • Question added Jul 05, 2014 • Service Tax • By Saurabh Aggarwal , CA , North West Delhi


If contractor B fixes the tiles at builder A site. Tiles are owned by A(builder). Even the work order was also of fixing tiles. Will the Service under reverse charge will be applicable on it if Contractor uses no other material. What will happen if contractor use white cement of his own to fix the tiles.

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answered Jul 05, 2014 by shankygarg , Karnal


answered Jul 05, 2014 by shankygarg , Karnal


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shankygarg

05-Jul-2014 , 12:44:37 pm

If no material/property is transferred ,reverse Charge will not be applicable because then it won't be a work Contract. Here , if White cement is used by the contractor even the it won't be covered under reverse charge because contract with consumables are not work contract. In short,reverse charge won't be applicable in both the cases.

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Saurabh Aggarwal

14-Jul-2014 , 12:03:56 pm

Thanks for the reply

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