erection and commissioning service

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... erection and commissioning service
Query (Issue) Started By: - balkishan maheshari Dated:- 3-12-2015 Last Reply Date:- 5-12-2015 Service Tax
Got 6 Replies
Service Tax
dear all i require study material on erection and commissioning services regards Bal Kishan Reply By Ganeshan Kalyani: The Reply: Dear Bal Kishan, you have touched a very hot topic. The subject needs a lot of discu .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ssion. If you can write down your specific query we would try to provide you with suitable reply. Reply By KASTURI SETHI: The Reply: Yes, Sir. Without specific query nobody can understand what Sh.Bal Kishan wants to know and for what specific purpose. With specific query the experts would be able to guide him in a better way which will be useful for others also. Reply By balkishan maheshari: .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... The Reply: Presently my company having mfg. of transmission line tower structure in Rajasthan, now it is get first contract on turnkey basis in state of UP where one contract related to supply of tower structure and another one related to erection and commissioning of line. Now to meet my service tax obligation on erection and commissioning contract I have following doubts 1. We open a branch .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... office at UP and taken UP sales tax reg. for purchase of local and inter state purchases and claim WCT refund which shall deduct by buyer. 2. my first query is we are doing our billing from UP address to buyer so should I get new service tax no. for UP or continue with present registration for deposit the tax amount 3. Another one when I opt abatement scheme, should I pay service tax on erection .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of brought out items and other material supplied by buyer 4. Another one should I take credit of service tax amount of services received from our erection contractors or amount deposited under reverse charge mech. 5. Another one what to do on service tax credit of common input services used by us where bifurcation not possible like bank charges, commission, courier service, machinery maint. etc .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... . 6. we also require to billing of some excisable and non excisable brought out items where non excisable items covered under trading sales so should I require to reversal of service tax cenvat credit as per rule 6 I request to all that kindly update how to deal all of these issue and tell me any other check point to meet my service tax obligation I also request to share with me any guidance no .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... te or book on this subject if anybody having knowledge. Reply By KASTURI SETHI: The Reply: Sh.Bal Kishan Ji, 1. If you have centralized billing system or centralized accounting system, you may opt for Centralised Registration Certificate under Rule 4 (2) & (3) of Service Tax Rules, 1994. If you have not Centralized billing system or centralized accounting system, you are required to apply for s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eparate service tax registration certificate for branch office in U.P. under Rule 4(3A) of Service Tax Rules 2. If you opt for abatement, you will provide service under the category of 'Works Contract Service' (Section 65(105)(zzzza) and value will be determined under Rule 2A(ii) (A) of Service Tax (Determination of Value) Rules,2006 and you will not be eligible for Cenvat Credit. Value o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f material will be included. 3. If you can segregate the value of material and equipment/machinery to be installed and erection, commissioning, installation charges, then your services will be of labour charges only i.e. 'pure labour' and pure labour cannot be classified under 'Works Contract Service'. Then your services will be classified under specific category of "Erection .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Commissioning or Installation Services" under Section 65(105)(zzd) and Service Tax will be paid at on gross receipt of labour charges only i.e. without abatement. 4. If you pay Service Tax on full value of erection, commissioning and installation services (pure labour), you can take cenvat credit. Credit can be taken under Reverse Charge Mechanism. 5. Regarding Service Tax credit of common .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... input services in the event of non-maintenance of separate records, you can opt for reversal of credit under Rule 6(3) of Cenvat Credit Rules, 2004. Rule 6 (3)(i) is very simple for computing the amount of reversal. 6. Value of non-excisable goods will be taken into account for computation of the amount of reversal of credit. For this purpose, non-excisable goods will be treated as under 'ex .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... empted goods'. See Explanation 1 and 2 under Rule 6(1) of Cenvat Credit Rules. Reply By Ganeshan Kalyani: The Reply: I fully agree with the views submitted by Kasturi sir. Reply By KASTURI SETHI: The Reply: Thanks a tonne, Sh.Ganeshan Kalyani, Sir.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X