Applicability of WCT - Liability of Service tax

[NAVIN SINGHAL]

WE ARE CONSTRUCTING A SHOPPING MALL. ON CONTRACTOR'S BILL WE ARE DEDUCTING WCT AS PER HARYANA VAT ACT, IS THERE ANY LIABILITY OF SERVICE TAX ARISE.

[Surender Gupta]

It appears that for you are acting as a principal and appointed a contractor for construction of the mall. In this case the liability to pay sercive tax is on the contractor only. If he collects service tax in his bill, you may pay the same as per your terms of agreement. But there is no provision for deduction of TDS like under wct

[Gopalarathnam Muralidharan]

If you are a contractor doing civil construction job, then your services fall under Industrial c construction services. Accordingly service tax would be leviable on the value of taxable services involved. On the otherhand, if you are undertaking construction and sale of the property, then your services would fall under Works contract Services.Here again you have to pay service tax.

[ASHOK CHOUDHARY]

Your contractor is liable for the service tax .About the redidentail construcation Builder is not liable for the service tax .

AI Summary

Service tax liability: contractors must bear and charge tax on construction and works contract services; principals cannot deduct it like WCT.
Service tax for construction work is payable by the contractor supplying taxable construction or works contract services; the principal may reimburse taxed amounts per contract but cannot deduct service tax at source like WCT. Industrial construction and construction-for-sale are both subject to service tax on their taxable value; one view noted residential builders may not be liable.