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

TDS on Purchase of Property from a NRI: PAN-Based Compliance

TDS on Purchase of Immovable Property from a Non-Resident: PAN-Based Compliance from 1 October 2026 Income-tax (Fifth Amendment) Rules, 2026… Read More

5 hours ago

Running a Crypto Corporate over-the-counter Desk in India

Running a Crypto OTC Desk in India: A Complete Guide to Accounting, Tax, GST and Regulatory Compliance for USDT Transactions… Read More

2 days ago

FTC Cannot Be Denied Merely for Late Filing of Form 67

Foreign Tax Credit Cannot Be Denied Merely for Late Filing of Form 67: ITAT Bangalore Ruling Explained A recent decision… Read More

2 days ago

What is UPI MDR) and Why Is It Being Introduced?

What is UPI MDR (Merchant Discount Rate), and why is it being introduced? What is MDR? Merchant Discount Rate (MDR)… Read More

4 days ago

Building a Robust Audit Manual for CA Firms : Implementation

Building a Robust Audit Manual for CA Firms: From Design to Implementation In today's increasingly regulated audit environment, maintaining a… Read More

6 days ago

AFA Renewal for Dec 2026 & Its Impact on NCLT Empanelment

Apply Early, Stay Compliant: AFA Renewal for December 2026 and Its Impact on NCLT Empanelment The renewal of the Authorisation… Read More

6 days ago
Call Us Enquire Now