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.

AI Summary

Liability for Service Tax in Shopping Mall Construction: Contractor's Responsibility under Works Contract Services A discussion on the applicability of service tax in the context of constructing a shopping mall under a contract. A participant inquires about the liability for service tax when deducting Works Contract Tax (WCT) as per the Haryana VAT Act. Responses clarify that the contractor is generally liable for service tax, especially if the construction falls under industrial or works contract services. The contractor should pay the service tax unless otherwise agreed. It is noted that there is no provision for TDS deduction like under WCT, and residential construction by a builder is not subject to service tax.