Service tax liability - offerinf some equipment, Service Tax

[Alok C. Gupta]

We want offer some equipment to our customer at a consolidated cost which also includes erection, installation and commissioning at customer's site. what is our service tax liability?

Posts / Replies

[Dinesh Gupta]

It dependents upon the nature of contract, if the two contracts are independent, in that case service tax is chargeable on the amount of erection, installation and commissioning. If the contract is in the nature of works contract you may pay service tax on the whole value minus cost of equipment. In this case, the terms and conditions of your contract would be the guiding factor.