Bookmarks   Feedback   Annual Subscription   New User   Login  
Tax Management India .com   
   TMI - Tax Management India. Com   
Classification - Product prawn feed - The legislature providing for exemption of such product from payment of tax does not necessarily and by itself imply that the product was otherwise exigible to tax. - HC    *    Invokation of extended period of limitation - appellant has wrongly arrived at the valuation of the pipes cleared by them on the cost construction method rather the appellant should have paid duty on the value of pipes as indicated in the contract - Having failed to raise this issue at the material time it cannot be said that the appellants had suppressed or mis-declared anything to enable the revenue to invoke extended period of limitation - Tri    *    Refund claim - reduction in value - credit notes raised by the Assessee subsequent to the sale/removal of goods - trade discounts given to its buyers including the component of excise duty - refund allowed - SC    *    Duty liability - parts of dumpers and others imported, further repacked and labelled by the appellant and sold - whether the items/parts which are repacked are parts of automobiles to fall under Third Schedule and/or Section 4A Notification or not - held yes - Tri    *    Cenvat credit - excess electricity sold to state govt. - The factum of consumption of electricity generated within the factory partly and sold out partly is an accepted proposition in the law and cenvat credit cannot be denied is also decided by various case laws - Tri    *    Classification - Lever Ayush Poshak Rasayan and Lever Rakshak Rasayan - based on the quotes from Explanatory Notes to HSN, it is clear that the subject items are in the category of food supplements and are rightly classifiable under Chapter Heading 2106.90 99. - Tri    *    The process of mixing base paint with tinter amounts to manufacture and is liable to payment of duty at the depot. - Tri    *    Goods and GST Bill passed    *    Travelling expenses incurred outside India by on duty employee whether taxable?    *    Opinion for availment of Cenvat Credit on invoices provided by CHA against service received for Export and Import.    *    FM: Government to now focus on increasing the banks’ ability to support growth    *    service tax payament-reg    *    CBDT signs 20 Unilateral Advance Pricing Agreements with Indian taxpayers    *    CENVAT CREDIT ON CERTIFIED COPY OF BILL OF MISC. CHARGES ON FINALIZATION OF BOE    *    should i buy machinery after gst or before gst which will be benefit for me    *    Captive consuption to be shown in ER-1 Return filed through ACES system -reg    *    Rebate claim issue    *    DTA supplied goods at SEZ - Order receive in US $    *    Government to issue Fifth Tranche of Sovereign Gold Bonds: Applications for the Bonds will be accepted from 1st September to 9th September, 2016 and Bonds will be issued on 23rd September,2016    *    RBI Reference Rate for US $
Discussions Forum
Home Forum Service Tax
← Previous Next →


#1 Issue Id: - 4761
Dated: 26-9-2012

  • Forum

Dear sir,

We are the manufacturing of engineering products and this product is heavy machinery type, so we can manufacturing of engineering product, Quality test with assembly and after that dismantles product and send to party site. Our manpower will be errected this Machinery after reach at site ( this errection charge will be paid by party and we can pay service tax on this ) .

Now question is that before 1st July 2012 we can register with “Erection and Commissioning “Services and paid service tax and charge bill to party for this( This procedure continue last 10Years ). We have required for registration of these services due to material send to party location and we have erecting machinery for final use. This all procedure continue up to 30-06-2012 but from 1st July onward we have to face some problem from party like party says that u cannot charge refection and commissioning bill against this services because from 1st July 2012 there is two services introduced “Negative services “& Non Negative services list and as per your product u cannot charge service tax under “Errection and commissioning “Services u can charge service tax under “Works contract “Services.

We can so many efforts for convince to party but party says that u can raise bill against works contract services and as per reverse charge mechanism u can pay 50% and party can pay 50% service tax .

Now our problem is that if we cannot registered with works contract services and we are only registered with Errection and commissioning services , is there any mandatory provision against service tax rules from 1st July 2012 onward for and errection and commissioning related services u can pay service tax under works contract service rules ? If yes then please provide as per Service tax provision notification and amendment .

Your Expert advice will be required in this issue sir .

Advance Thanks and Regards,


Post Reply

Posts / Replies


#2 Dated: 26-9-2012

Your customer's contention is correct that effective from 1st July,12, the service whoch involves material and labour for erection contracts will be subject to joint laibility of 50% by the service provider and 50% by the service receiver. From 1st July onwards, there is no category specific services and all services are brought under the common head - " All taxable services-other than negative list"

You can amend your Service Tax Registration with the above and bill the party with Works Contract Service by charging 50% of applicable Service Tax

#3 Dated: 27-9-2012
By:- vijay kumar

You have not mentioned whether it is a composite contract or there are separate contracts for supply of m/c and erection. In case of latter, you may follow the previous procedure since it wouldnot be a works contract, but would be a non-negative taxable service w.e.f. 1.7.2012. However, if it is a composite contract, it becomes a works contract which has undergone certain changes from 1.7.2012. Even if so, the question of partial reverse charge i.e. 50:50 payment comes up only when the condition in clause IA(v) of NOfn.30/2012-ST dt.20.6.2012 is satisfied, which readsas follows:

(v) provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business or supply of manpower for any purpose 2[or security services] or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory"

Thus, if you are an individual, HUF or partnership firm and ur customer is a business entity regd as a body corporate, only then the contention of ur customer is correct. Otherwise, as service provider you would be liable to pay 100% of the service tax on the value arrived in terms of Rule 2A of the Service Tax (Determination of Value) Rules, 2006. In any case, you may need to amend your RC un

#4 Dated: 27-9-2012

I do agree with the view expressed by Mr Vijay. Infact even after enactment of Negative list there is no change in the provision under which one service (construction service or erection & commissioning service) can be classified into works contract service if the condition under which such service can be classified in to works contract service is satisfied and the agreement is a composit agreement, then only the said service can be classified under WCS other wise not, Further as Mr Vijay said above condition in clause IA(v) of Notification 30/2012-ST dt.20.6.2012 also needs to be satisfied.

#5 Dated: 28-9-2012
By:- Pradeep Khatri

Mr. Vijay has submitted a beautiful answer to the above query.

Post Reply


← Previous Next →
what is new what is new

Advanced Search

Latest Updates




More Options


|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map || ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version