Payment certificate and abatement

[Sudhir Kumar]

If a party submit only payment certificate showing VAT/Sale Tax deducted by the Service recipient and he imparted the construction work to them, is a valid ground to assume that he has given work contract service.?

AI Summary

VAT Deductions Indicate Sale, Not Service; Abatement Under Service Tax Rules Possible Based on VAT Returns A query was raised regarding whether a payment certificate showing VAT/Sales Tax deductions by a service recipient implies a work contract service. One response clarified that VAT/Sales Tax payments indicate a sale, not a service, as VAT and Service Tax are distinct. Another response mentioned that abatement under the Service Tax rules can be claimed based on VAT/Sales Tax returns. A participant asked if the query referred to Works Contract Tax, to which it was clarified that it concerned deducted VAT, not Works Contract Tax.