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2018 (6) TMI 384 - AT - Service TaxErection, commissioning or installation services - notional amount - it was noticed that appellants paid service tax on erection, commissioning or installation services adopting a notional value of 15% of the gross amount realized for the supply and erection of lifts/escalators. On the balance portion of 85%, the appellants discharged VAT - It appeared to the department that such notional adoption of 15% of the gross amount realized is not proper and resulted in short payment of service tax - The demand has been raised alleging that the appellants have discharged service tax only on 15% of the gross amount realized for the supply and erection of lifts / escalators - Held that:- The service portion of the work order in regard to supply and erection of lift is to be taken as 15% - Further, as per the Tamil Nadu Value Added Tax Rules, 2007, the service portion of such works contract is to be considered as 15% and the appellant has to pay VAT on the balance portion - demand cannot sustain - appeal allowed - decided in favor of appellant.
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