Works Contract, Service Tax

[ANIL MANTRI]

A company procured boiler from a 'X' Company and gets it installed from 'Y' individual. 'Y' also brings some materials along with it for installation of the Boiler and charges service tax as if original works contract (40 percent *12.36 percent *50 percent ). The company who procured the boiler also paid its 50 percent share. My query is whether the cost of Boiler procured from X company will also form the part of Gross Amount Charged and the service tax has to be paid on the same? 

Posts / Replies

[Madhukar N Hiregange]

The tax in this case is on the individuals activity and not on activity of co. Not to include valuye of boiler purchased by co.