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Can any one clearly difine what is Works Contract with
suitable exemple
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Answer Posted / vijaykant
Example A-Company requires a building in their company,
then A will give Works Contract to Contractor-B
Contractor-B then build Building in A-company
by providing material, labour & Expenses, this is works
Contract.In his Invoice Contractor-B will charge Works
Contract Value, 5% VAT & 4.12% or 10.36% Service Tax on
Contract Value(Note:- 4.12% Service tax is Under
composition scheme and 10.36% Service will be on 36% of
contract value)
Mainly works are done at the purchasers site
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