Remember | Register | Forgot Password?
Bookmark This Page   RSS Feeds  Follow On Twitter

 

Search for Lawyers          
    



Please Wait ..


Discussion > Taxation > Service Tax > payment of service tax on maintenance & repair services   Unanswered Threads Post New Topic

Pages : 1


There are 1 Replies to this message


Lata Murmu


Office Supdt.
[ Scorecard : 24]
Posted On 04 March 2010 at 20:51 Report Abuse

 Railwyas is doing overhauling work of diesel locomotives for  Private sector  units uner the registration on maintenanace & repair services which comes sub clause zzg of  clause 105 of finance act 1994 and providing materials to them  during the execution of work and charging them @ 10.3% as service tax on whole amount. But they are not agree to pay on gross amount because as  exemtions rule i. e.  " value of goods and material sold by the service providor to the recipient of service during the course of providing any taxable service , provided that no CENVAT credit has been taken on such goods and material, or CENVAT credit has been taken , such credit is paid before effecting the sale." 

As Railways is using materials during the course of overhauling not the selling purpose as railway has no authority to private agencies.  the question is under this circumtances the railway authority is taking service tax @ of 10.3% on gross amount is correct or material part can be excluded from the gross amount and then will  be charged service tax?



Online certification courses IP, IT and Investment Law


Bodla Upender


proprietor
[ Scorecard : 33]
Posted On 10 March 2010 at 23:15 Report Abuse

The question does not arise of payment of service tax @10.3% on whole bill amount. The sale of components will attract under VAT of the Concerned state laws & only on jobworks done amount only attracts the Service Tax @10.3%.

Other wise without taking any cenvat input can raise the bill including components & job works can be charged under the works contract or maint ,repairs may attract @ 4.12% of service Tax.

Discuss in this matter and take 2nd opnion of your superintendent of Service tax authority.

 




Related Files



Previous Thread
Previous
Next Thread
Next

Related Threads


Post your reply for payment of service tax on maintenance & repair services



Your are not logged in . Please login to post replies

Click here to login


Not a member yet ?? Click here to signup

Message







    

  • This is a public forum. Avoid posting content which you do not wish to disclose in public.
  • Use thank button to convey your appreciation.
  • Maintain professionalism while posting and replying to topics.
  • Try to add value with your each post.





Subscribe to the latest topics :


Forum Home | Forum Portal | Control Center | Who is Where | Popular Threads | Today's Topic | Recent Posts | Today's Posts | Post New Topic | Thread With Files | Top Threads - Month | Unreplied Topics | Forum Stats


web analytics