Work Contract Services:-

 A contract for carrying out any work which includes assembling, construction, building, altering,s

 manufacturing, processing, fabricating, erection, installation, fitting out, improvement, repair or

 commissioning of any movable or immovable property. Where the works contract is in the nature

 of a taxable SERVICE, service tax will be liable on the value of such contract. Where goods are transferred

 and form integral part of the execution of such contract, VAT would be liable on such value of contract. However composite scheme is available for

 payment of taxes on works contract since they contain elements of both service tax and VAT. Composite tax of 4% can be paid to do away with the ST

 and VAT liabilities where no CENVAT credit will be allowed to be claimed.