TMI BlogService Tax applicable on Errection or Commission of plantX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts We are the service provider of errection or commission of plant/machinerry. It is composit service involved electrical items as well as manpower. We are not availing input credit for items used for errection or commission. Above service providing through contractor. 100% of work done through contractor. Contractor billing on us separtly for service and material. We are raisin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g service invoice on our Customer with small margin. Whether we have to calculate service tax on entire value(composit value) or any abatment available for exclude material cost. Kindly clarify - Reply By KASTURI SETHI - The Reply = SH.VIVEK ANANDHAN JI, From your query ((100% through Contractor and manner of raising invoice), it appears that manpower is under the supervision and control ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Contractor. So as per definition of 'Manpower Recruitment or Supply Agency Services' manpower has not been supplied. The whole liability of discharging ST is on contractor. NO RCM. No abatement in respect of this service. Secondly, If your service is provided with material, then it would fall under the category of 'Works Contract Service' and you will be entitled for abatemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of 60% from the gross receipt under Notification No.24/12-ST dated 6.6.12 effective from 1.7.12. ( Rule 2 A of Service Tax (Determination of Value Rules), 2006 . Pure labour cannot be classified under WCS. - Reply By KASTURI SETHI - The Reply = If service is provided without material, it would fall under the erstwhile category of, Erection, Commissioning or Installation Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices and no abatement is admissible. - Reply By Ganeshan Kalyani - The Reply = Sir I agree with the views of Sri Kasturi sir. - Reply By Vivek anandhan - The Reply = Sir, Thank you for your clarification It is clear that we can collect ST on 40% of contract value as per the notification 24/12-ST dt.06.06.2012. Requested you to confirm that this is effectiv notification, since this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification is not reflected in the effective notification list in TMI. - Reply By KASTURI SETHI - The Reply = Sh.Vivek Anandhan Ji, Notification No.24/12-ST dated :- 6.6.12 is in force.Rate of abatement for original works has been same since it inception. Highlighted portion is relevant for you. - Service Tax applicable on Errection or Commission of plant - Query Started By: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Vivek anandhan Dated:- 5-5-2016 Service Tax - Got 5 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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