Residential Service Contract Definition. Commercial furniture manufactured to meet established industry standards. A constellation of services available in “24/7” living quarters—e.g., group homes, cluster apartments—where patients can receive treatment, education, group therapy, and skills training.
A service contract might cover specific parts of the product or specific repairs. Owners may purchase this type of contract for all of their building equipment or for only the most critical equipment, depending on their needs. Involving no movement of goods, then the said service contract is liable to tax under construction service.
Works contract has been defined in section 65b of the finance act, 1994 as a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair.
If the contract is for a service i.e. “works contract” means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion. Owners may purchase this type of contract for all of their building equipment or for only the most critical equipment, depending on their needs. Residential service companies (rscs) are licensed by trec to offer residential service contracts (also known as home warranties) to consumers for services related to the mechanical failure or failure of an appliance or household system due to normal wear and tear of an appliance or household system.