Bare Act

The Maharashtra Sales Tax on the Transfer of Property in Goods Involve in the Execution of the Works Contracts Act, 1985

This Act regulates the taxation of "works contracts," which are agreements where both labor and materials are supplied, such as construction, fabrication, or repair projects. It addresses the legal challenge of separating the value of goods from the value of services in these contracts. The Act mandates that the transfer of property in goods used during the execution of such contracts is subject to sales tax. It applies to any "dealer," including government bodies, clubs, and private companies, involved in these transfers. For the ordinary citizen, this ensures that materials used in construction or renovation projects are properly taxed, preventing tax evasion through the bundling of goods with services.

PDF: pending for this language.