9911796707
TMI Blog2019 (3) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... sition scheme for payment of Service Tax) Rules 2007. These rules were amended from 07.07.2009 vide notification No. 23/2009-ST, dt. 07.07.2009. As per the works contract composition scheme, the service provider is required to pay a tax of 4% on the gross amount charged for the works contract. The service provider need not bifurcate the value of the services provided. On 07.07.2009, Rule 2 of these Rules was amended by introducing an explanation to the effect that the gross value of the works contract includes the value of all goods used in relation to execution of works contract whether received free of cost or for consideration under any other contract. The purpose of this amendment was explained by CBEC in its D.O.F. No. 334/13/2009-TRU, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing in sub-rule (3) is being amended to provide that the composition scheme would be available only to such works contracts where the gross value of works contract includes the value of all goods used in or in relation to the execution of works contract whether received free of cost or for consideration under any other contract. This condition would not apply to those works contracts, where either the execution of works contract has already started or any payment (whether in part or in full) has been made on or before the date of the amendment, i.e. 07.07.2009, from which the said amendment becomes effective (refer notification No.23/2009-ST dated 07.07.2009)." 2. Ld. Counsel submits that in the present appeal, 14 projects executed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as single contract divided into three activities namely supply of equipment, erection and civil works. He prayed that the appeal may be rejected. 4. On examination of the matter, we find that the department seeks to include the value of goods supplied either under a different contract or as a separate part of the same contract in the value of taxable services on which service tax on works contract service is to be charged. We find that on an identical issue in respect of the same assessee in appeal No. ST/22281/2015, after examining the amendment to works contract (composition scheme for payment of Service Tax) Rules, 2007 vide notification No. 23/2009-ST, dt. 07.07.2009 and the explanation of the amendment by CBEC vide D.O.F. No. 334/13/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
