Taxation of works contracts in India has alwys been a contentious issue. Under erstwhile indirect tax laws, States were empowered to impose tax on goods component while Centre was empowered to impose tax on service component of works contract. The works contract being a composite contract involving transfer of title in goods as well as provision of services, was liable to be taxed under VAT (sales tax) and service tax legislations. Both these
legislations provided for presumptive valuation whereby some portion of value was suffering dual taxation.
Source CA Naresh K. Sheth & CA Sidharth Sheth
Latest Posts in "India"
- Tripura HC: ITC Cannot Be Denied to Bona Fide Purchaser for Supplier’s Tax Default
- Ready-to-Drink Non-Alcoholic Beverages Like Mojito to Attract 40% GST, Rules WB AAR
- Bombay HC: Assignment of Long-Term Industrial Leasehold Rights Not Taxable as ‘Supply’ Under GST
- ITC Not Allowed on Mall Construction for Leasing, Rules Tamil Nadu AAR under GST Law
- Section 74 Cannot Be Invoked for GST Return Mismatches Without Evidence of Fraud or Suppression
