Applicability of works contract

[Guest]

In some states as per the local VAT act the contracts are treated as works contract some of them are as under: Painting / polishing contract Civil work like construction of buildings roads Construction of bodies of motor vehicles and construction of trucks Tyre retreading Dyeing and printing of textiles Annual maintenance contracts for Xerox / printers / computers / airconditioners Fixing of marble slabs polished granite stones and tiles In all the above listed cases the deduction for material and labour is prescribed as per vat act Now for the purpose of service tax whether the above listed will be treated as works contract

AI Summary

Service Tax Applicability on Works Contracts Clarified: Only Section 65(105)(zzzza) Activities Taxable; Others Depend on Specifics. A query was raised regarding the applicability of service tax on various contracts treated as works contracts under local VAT laws, such as painting, construction, and maintenance contracts. The response clarified that only activities specified under section 65(105)(zzzza) are classified as services involved in works contracts for service tax purposes. Other contracts not included in this section are either not taxable or should be classified based on their specific nature and scope.