WCT on building construction

[santosh sabat]

An educational insittution registered under indian trust act and got exemption U/s 12AA of the Income Tax Act. it had made construction of building through a builder.

whether Service tax is required to be charged by the builder if so under which category?
Whether WCT is required to be deducted from payment made to builder.

so far as my knowledge goes, service tax is not required for non trading organisation. since it is a trust so service tax is not applicable.

give your valuable suggestion in this regard.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in this regard? If not please inform me. Service tax has met changes in works contract.

AI Summary

Service tax applicability for works contract construction for a tax-exempt educational trust may be affected by recent works contract changes. Whether a builder must charge service tax and whether WCT must be deducted for construction of a building for an educational institution exempt under 12AA is questioned; the querist suggests trusts may be exempt from service tax, while the respondent observes that service tax treatment has changed for works contract, indicating taxability and withholding obligations cannot be assumed from the trust's exempt status alone.