works contract

[Raja krishnan]

Dear Sir,

we are doing construction business under works contract for a LTD concern. so which category we are coming under this operation whether service provider or service receiver also please clarify we are applicable for abatement as well as RCM.

AI Summary

Works contract service classification: provider status allows abatement; recipient may be liable under split reverse charge mechanism.
A contractor performing a works contract is the service provider and may claim abatement; where the provider is an individual, HUF, proprietary concern, partnership or association of persons in the taxable territory, tax liability is split so that the recipient pays fifty percent under the Reverse Charge Mechanism while the provider pays the remainder.