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of <h1>Service Tax on Works Contracts from June 1, 2007: Key Rules, Exemptions, and Impact on CENVAT Credit</h1> The the service tax implications on works contracts effective from June 1, 2007, under section 65(105)(zzzza). It specifies that service tax applies to services related to works contracts, excluding certain infrastructure projects. The document explains the definition of a 'works contract' and 'residential complex,' and clarifies that service providers opting for the Works Contract (Composition Scheme for Payment of Service Tax) are not entitled to CENVAT credit on inputs. It also addresses the classification of services and the applicability of service tax and VAT/sales tax on goods involved in works contracts.
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