construction of foundation, platform & road

[Brijgopal kankani]

Are construction of foundation,platform,steps & road for the wind mills come in the scope of work contract.If yes than what is the rate of service tax for them and also the reverse charge machnism are applied or not in that case.if yes than what is the rate of service tax in reverse charge machnism for them ?

[YAGAY andSUN]

Yes, it comes under the provision of Works Contract Services as well as Works Contract under VAT Act.

Service Tax will be 12.36% on the 40% of the Gross value of the contract and if the services are being provided by the individual, HUF, Partnership or association of persons to the Pvt. Ltd. Company or Limited Company then partial reverse charge mechanism will be applicable.

 

AI Summary

Windmill Construction: Foundations, Platforms, Steps, and Roads Classified as Works Contract Services; 12.36% Service Tax on 40% Value A query was raised regarding whether the construction of foundations, platforms, steps, and roads for windmills falls under the scope of a works contract and the applicable service tax rates. The response confirmed it is covered under Works Contract Services and the VAT Act. The service tax rate is 12.36% on 40% of the gross contract value. If the services are provided by individuals, HUF, partnerships, or associations to private or limited companies, a partial reverse charge mechanism applies.