works contract tax in case of cce & c v larsen & tubro

WORKS CONTRACT TAX (WCT) IN THE CASE OF CCE &CV LARSEN &TUBRO (SUPREME COURT)

The Apex court has held that Service Tax cannot be levied on indivisible contracts prior to the introduction of works contract services vide Finance Act, 2007. The decision observed that since Finance Act laid down no charge or machinery to levy and assess service tax on indivisible composite works contracts prior to 1.06.2007, such levy cannot be held as valid.  This decision reverses position taken in GD builders [2013 [32] S.T.R. 673 (Del.)] case by Hon’ble Delhi high court.

To extend the thought further basis the above decision, it can be argued that services forming part of indivisible works contract other than those mentioned in the definition of works contract services in Finance Act, 1994 should not be taxable prior to introduction of negative list.

For query or help, contact: singh@carajput.com or call at 9555555480

Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

Recent Posts

GST rate on Hospitality Industry/ Hotel Rooms in India

GST rate on Hospitality Industry/ Hotel Rooms in India The hospitality & tourism industry in India is expected to rise… Read More

4 hours ago

Why OIDAR is treated differently under GST

Why OIDAR is treated differently under GST Online Information Database Access and Retrieval (OIDAR) refers to services delivered over the… Read More

1 day ago

Smart Term Insurance Picks for the Self-Employed

Smart Term Insurance Picks for the Self-Employed Being self-employed is like walking a tightrope; you enjoy the thrill of independence,… Read More

3 days ago

2500 Cr Loss Risk from Compensation Cess Credits in GST 2.0

FADA : Rs. 2,500 Cr Loss Risk from Compensation Cess Credits in GST 2.0 Transition The Federation of Automobile Dealers… Read More

5 days ago

Complete Guide to CA Articleship

Complete Guide to CA Articleship (2024-25) CA Articleship is the most important phase after clearing CA Intermediate. This training bridges… Read More

1 week ago

Statutory Compliance Calendar – September 2025

Statutory Compliance Calendar – September 2025 5th September : SEZ: MPR filing. 7th September FEMA: ECB 2 Return. Income Tax: TDS/TCS… Read More

1 week ago
Call Us Enquire Now