All Types of Taxation Notes 666

What is a works Contract? Simply put, a works contract is essentially a contract of services which may also involve supply of goods in the execution of the contract. it is basically a composite Supply of both services and goods, with the services element being dominant in the contract between parties. In a general sense, a contract of works, may relate to both immovable and immovable property. E.g. if a sub-contractor, undertakes a sub-contract for the building work, it would be a works contract in relation to immovable property. Similarly, if a composite supply in relation to movable property such as fabrication/ painting/annual maintenance contract etc. is undertaken, the same would come within the ambit of the broad definition of works contract.   Works Contract- the position in VAT &SERVICES TAX - A works contract has elements of both provision of services and sale of goods and was therefore taxable under both laws. Position under GST? Under GST laws, the definition of " ...