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

Works Contract Services

Posted by on in Works Contract Service
  • Font size: Larger Smaller
  • Hits: 1816
  • Subscribe to this entry
  • Print
  • Report this post


Alstom Projects India Ltd. (vs) Commissioner of Service Tax*, Delhi

Section 65(105)(zzzza) of the Finance Act, 1994 - Works contract service - Period 1-3-2001 to 15-12-2005 - Whether where work contract is an indivisible works contract for a particular service and said service is taxable under section 65(105), service tax will be chargeable; in such cases question as to whether work contract is divisible or indivisible is irrelevant - Held, yes - Whether question of vivisection of an indivisible work contract is relevant only in context of charging sales tax on transfer of property in goods involved in providing of service, for which by 46th Constitutional Amendment, article 366(29A) containing extended definition of 'Tax on sale or purchase of goods' has been introduced, but there is no need to invoke legal fiction of article 366(29A) for charging service tax on works contract - Held, yes - Whether for period prior to 1-6-2007 i.e., when levy of tax on service of works contract came into force, if a works contract was an indivisible service contract, whether or not involving use of goods which get consumed or get passed in to service receiver either as such or in changed form, and said service is taxable, works contract would attract  service tax and if work contract was a composite contract involving sale of goods and one or more services and those services were taxable, service tax would be chargeable on value of these services - Held, yes - A consortium led by assessee was awarded a contract by DMRC for design, manufacture, supply, installation, testing and commissioning of train control, signaling and telecommunication system for some particular stations of Delhi Metro - As per contract with DMRC whole contract was divided into different sections and each section were divided into five different cost centers, namely, A, B, C, D & E - Cost centres A,B,D and E covered pure service activity and cost centre C covered supply of equipments and accessories to be installed - Each cost centre was further divided into ;milestone' which were nothing but various items of equipments, machineries and accessories in cost centre C - Payments were made on each milestone basis - Whether impugned contract was for sale as well as for service and it was not an indivisible contract and service tax would be charged on its service component - Held, yes [Paras 4.,1 4.4-1, 5.2, 4.5-2, 4.5-5 and Para 6.1]
Rate this blog entry:
Trackback URL for this blog entry.


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

Leave your comment

Guest Wednesday, 18 September 2019

Like us on facebook

Twitter Feed

ConsultC Please find the latest presentation given to select gathering of real estate developers at Kolkata on West Bengal H… https://t.co/Uizrcczy13
ConsultC Apart from the intricacies of the Forms and constant regulatory changes, GST has a lot of other aspects. We had an… https://t.co/YB1asAgU2s
ConsultC Second Edition of our book released with latest amendments upto September, 2018 https://t.co/eOwUcNZife


304, Super Plaza, Sandesh Press Road, Vastrapur, Ahmedabad
+91 - 079 - 40032950
This email address is being protected from spambots. You need JavaScript enabled to view it.

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.