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TMI BlogLiability and applicability of service taxX X X X Extracts X X X X X X X X Extracts X X X X ..... Liability and applicability of service tax X X X X Extracts X X X X X X X X Extracts X X X X ..... ory firm gets order from a ltd. co. to 'prefabricate,sell and hand over Manhole/Handhole as per specifications & drawings given by ltd.co. i)Raw materials like cement,steel etc are 100% to be purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by proprietory firm(i.e.processor ). ii)Proprietory firm gets this work done through contract labourers. iii)Finished goods to be delivered at site of ltd.co. iv)sales price is fixed by ltd.co which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is inclusive of material cost+ fabrication cost + transportation cost)excluding service tax. v)Activity of fabrication is done only on such orders.It is not a regular business.If order gets cancelled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then 'Manhole/Handhole may or may not be saleable in open market. Query:1)Whether above activity of proprietoy firm is subjected to ser.tax or excise duty ? ii)sales price is inclusive of transportat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion.Who isliable to ser.tax ? Reply By Surender Gupta: The Reply: From the query it appears that the transaction is liable to excise duty and not service tax. And once, it is decided that the activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y is manufacturing activity and liable to excise duty, the burden of discharging excise duty is on the Manufacturer i.e. proprietory firm. However, the same may also be eligible for SSI exemption. X X X X Extracts X X X X X X X X Extracts X X X X ..... Discussion Forum - Knowledge Sharing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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