ED & Service Tax on Ready Mix Concrete, Central Excise

[swamy k]

Dear Sir,

We need 20000 CMT of ready mix concrete for construction of our power plant. For that we are going to enter a work order contract with RMC supplier. For that we supply cement and water, contractor will fix his machinery at our site to mix RMC and some times he may also supply RMC by mixing at his plant, when ever RMC demand for construction is low.

Ours is power plant construction, no excise registration, so we cant claim any input.

Please clarify, what are the taxes will be levied on RMC? Is that excise and service tax both will be applicable on RMC purchased? Can he (supplier) claim exemption for value material supplied along with his service?

Is that ready mix concrete excisable good and duty payable. I know that RMC amount to manufacture u/s 2(f) of CE Act.

Requesting you all, please clarify with details sir...

Thanking you,

Swamy.K

Posts / Replies

[Alok Kumar]

Dear Mr.Swamy.k.

 

Looking at the facts of your case it appears to me that the above goods will be exempted from both central excise duty and service tax.

Thanks,

Alok Kumar