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 and SUN]

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

Works Contract Services for windmill foundations attract service tax on part of contract value; partial reverse charge applies.
Construction of foundations, platforms, steps and roads for windmills is classed as Works Contract Services (and as works contract under VAT). Service tax is levied on the apportioned taxable portion of the gross contract value; partial reverse charge applies when the supplier is an individual, HUF, partnership or association of persons and the recipient is a private limited or limited company.