Applicability of Works contract scheme

[DEBABRATA ROY]

A service provider is registered under 'Rep and Maintenance Service 'dealing with materials and labours .Could it opt work contract valuation rule since it is difficult to measure taxable service

AI Summary

Service provider seeks works contract classification; section 65(105)(zzzza) and notification 12/2003 may offer solutions. A service provider registered under 'Repair and Maintenance Service' inquired about opting for the works contract valuation rule due to difficulties in measuring taxable services. One response suggested that if the activities fall under the definition of a works contract as per section 65(105)(zzzza), reclassification might be possible. Another response indicated that repair and maintenance services generally do not qualify as works contracts for service tax purposes, but the provider could consider the benefits of notification no. 12/2003 if the conditions are met.