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Service Tax - Highlights / Catch Notes

Home Highlights July 2018 Year 2018 This

Classification of services - some contracts are for hiring of ...

Service Tax

July 5, 2018

Classification of services - some contracts are for hiring of crane, removal of sludge, excavation of river channel, labour supply, replacement of equipment, cleaning activities, replacement of equipments/valves and some fabrication works. All the independent contracts cannot come under the purview of Construction Service.

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  1. Disallowance u/s 40(a)(ia) - TDS u/s 194C - payments towards the hiring charges of cranes - a simpliciter payment towards hiring charges of cranes cannot be brought...

  2. Payments made for hiring of cranes, the provisions of section 194C would apply and not 194I - AT

  3. Deduction of Tax u/s 194C - Payment of Hiring of Cranes - The provisions of section 194C were only applicable for such payments and not provisions of section 194-I - AT

  4. Removal of gold Sludge without payment of duty - waste and scrap of containing precious metal or precious metal compounds - demand of duty confirmed - penalty waived - AT

  5. Supply or not - inter-state branch transfers - levy of GST - providing medium-sized heavy-duty cranes on rental/lease/ hire basis to its clients without transferring the...

  6. Waiver of pre-deposit amount of duty - Clearance of E.T. sludge - “Sludge” obtained in effluent treatment plant belonging to an industrial unit is exempt - AT

  7. Depreciation on the Cranes given on lease to Oil India Limited @ 30% disallowed - according to the Revenue, such assets were not used for hire and, therefore, are not...

  8. CENVAT credit - service tax paid on hiring of Cranes, Hydra Cranes, Excavators etc. - denial of credit on the ground that these items are not capital goods as they are...

  9. Mineral oil sludge is not classifiable under Schedule to the Central Excise Tariff Act, 1985 - AT

  10. Wire ropes used in the Mobile Cranes are a part of the Mobile Cranes and thus fall in Entry 155 of Schedule IV of the VAT Act.

 

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