In case of many Real Estate Developers and Builders, while accouting for Service Tax and filing returns, they choose ST category of 'Work Contract' or some choose 'Construction Services' . Why ???
Are both same ? in economic substances ??
are they free to choose any category or is there any legal methodolgy?
Please advise.
Debate on Real Estate Service Tax: Proper Classification as 'Work Contract' vs. 'Construction Services' Based on Transaction Nature A discussion on a forum addresses the categorization of service tax for real estate developers and builders, specifically whether to classify under 'Work Contract' or 'Construction Services.' Participants clarify that a 'Works Contract' involves the contractor supplying materials and services, while 'Construction Services' involve the contractor using materials provided by the client. The conversation highlights that the correct classification depends on the nature of the transaction and the roles of the builder and subcontractor. The discussion concludes with consensus and appreciation for the shared insights. (AI Summary)
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