What is Works Contract?

Works Contract
A dealer liable to pay tax on the sales effected by way of transfer of property in goods
(whether as goods or in some other form) involved in the execution of a works contract
may pay tax under composition scheme as follows:
a. 5% of the total contract value of the works contract in the case of a notified
construction contract, and
b. 8% of the total contract value of the works contract in the case of any other contract.
The contract value shall be calculated after deducting from the total value of the
works contract, the amount payable to a sub-contractor.