Log in Register

Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *
View more blog entries

Consult Construction

Consult Us For Construction

Classification of Taxable Services

Posted by on in Service Tax
  • Font size: Larger Smaller
  • Hits: 3850
  • 0 Comments
  • Subscribe to this entry
  • Print
  • Report this post

2015-VIL-147-CESTAT-DEL-ST-LB

Service Tax – Larger (Special) Bench reference pertaining to works contract

  • Classification of taxable services i.e., whether components of a composite transaction amounting to supply of labour/rendition of service(s), under a works contract ought to be classified only under Section 65(105)(zzzza) of the Finance Act, 1994 (the Act) - inserted by the Finance Act, 2007, w.e.f 01-06-2007; or are also comprehended within the ambit of existing (as on 01-06-2007) taxable services such as Commercial or Industrial Construction Service (CICS); Construction of Complex Service(COCS); or Erection, Commissioning or Installation Service (ECIS) - interpretation of relevant provisions of the Act. CICS; COCS & ECIS are distinct, extant services defined and enumerated to be taxable services, prior to introduction of Works Contract Service (WCS) – Determination of Value Rules, 2006 - HELD - The President and the learned Member (Judicial) Ms. Archana Wadhwa concluded that a composite contract, involving transfer of property in goods and rendition of services, cannot be vivisected and services components thereof subject to the levy of service tax, on classification of the services under taxable services such as “Commercial or Industrial Construction”; “Construction of Complex” or “Erection, Commissioning or Installation” prior to 01.06.2007; and that service components in a works contract are taxable only under Works Contract Service defined and enumerated in Section 65(105)(zzzza) of the Finance Act, 1994 - Hon’ble Members (Technical), Shri Rakesh Kumar, Sh. P.R. Chandrasekharan and Sh. R. K. Singh (by distinct concurring orders), concluded to the contrary, that service elements in a composite contract could be subject to service tax prior to 01.06.2007 as well, if these are appropriately classifiable under “Commercial or Industrial Construction”; Construction of Complex” or “Erection, Commissioning or Installation”, as the case may be
  • In view of the majority opinions recorded, the reference is answered as: Service elements in a composite (works) contract (involving transfer of property in goods and rendition of services), where such services are classifiable under “Commercial or Industrial Construction”; “Construction of Complex” or “Erection, Commissioning or Installation” (as defined), are subject to levy of service tax even prior to (01.07.2007) insertion of sub-clause (zzzza) in Section 65(105) of the Finance Act, 1994
Rate this blog entry:
18
Trackback URL for this blog entry.

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest
Guest Monday, 25 September 2017

Like us on facebook

Twitter Feed

ConsultC Webinar - 1 Optimising Ongoing Contracts Negotiations and Stock Credits through GST Builder... https://t.co/FoXeOs433G
ConsultC I posted a new video to Facebook https://t.co/KxdyUYUGTj

Address

Address:
304, Super Plaza, Sandesh Press Road, Vastrapur, Ahmedabad
Gujarat-380054
Tel:
+91 - 079 - 40032950
E-Mail:
This email address is being protected from spambots. You need JavaScript enabled to view it.
Website:
www.consultconstruction.com

markerFind on Google Maps

Who we are

We are Ahmedabad based professional consulting firm. We are providing various services to Construction, Real Estate and Project Companies in various areas like Indirect Taxation – Service Tax & Multi state VAT consultancy, ERP implementation, Site & Management audit, Designing Tender & other related contractual documents etc.