https://www.taxtmi.com/caselaws?id=444446 Under the compounded-rate scheme for works contracts, only receipts with a real nexus to the construction activity form part of the "whole contract amount," so amounts collected as pure-agent reimbursements for service tax, building tax, maintenance fund and sinking fund are excluded. However, where the parties execute a single indivisible construction agreement, the contract value cannot be split to exclude the portion of construction completed before the agreement date, because the taxable amount remains the works contract value under the scheme. The result is partial relief on reimbursement-type receipts, while taxability of the full contract value in the single-agreement context is affirmed. en-us Fri, 29 Sep 2023 00:00:00 +0530 Fri, 28 Nov 2025 14:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=444446 Under the compounded-rate scheme for works contracts, only receipts with a real nexus to the construction activity form part of the "whole contract amount," so amounts collected as pure-agent reimbursements for service tax, building tax, maintenance fund and sinking fund are excluded. However, where the parties execute a single indivisible construction agreement, the contract value cannot be split to exclude the portion of construction completed before the agreement date, because the taxable amount remains the works contract value under the scheme. The result is partial relief on reimbursement-type receipts, while taxability of the full contract value in the single-agreement context is affirmed. Case-Laws VAT / Sales Tax Fri, 29 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=444446