Is service tax applicable on diesel filling at sites
Amullya Pandey
(Querist) 18 April 2012
This query is : Resolved
Dear Sir,
I need some case laws related to service tax valuation rules. My client does the diesel filling job in mobile towers. For that, he bought the diesel as per requirement from nearest petrol pump and the company reimburses the same amount later to him. Mobile Companies are not giving service tax on the amount of diesel but the service tax department is insisting the tax on it. The client does not sell diesel to anybody as his trade. There is no separate agreement with the companies for working as pure agent. Any case laws related to similar valuation matter or on reimbursement will help me a lot.
Thanks a lot,
With regards,
Amullya Pandey- Adv
Raj Kumar Makkad
(Expert) 18 April 2012
Your client is actually not providing service of providing diesel rather he is providing the service of maintaining the machine meant for the purpose of towers. The diesel is a product which is being used by your client to perform his agreement so that do not come within the definition of sale or service qua diesel.
No citation is available for your help as you are insisting on wrong side.
Shonee Kapoor
(Expert) 18 April 2012
:-) Thumbs Up Makkad Sir.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Amullya Pandey
(Querist) 24 April 2012
Dear Makkad Sir,
At the outset thanks to you for given the reply against my query.
With reference to the previous query I want to know that if telecom company get execute two agreement separately one for repair n maintenance and another for only diesel filling then in this situation, is applicable the service tax on raised amount against diesel filling by the vendor? And company can execute an agreement separately with vendor?
Thanks
Amullya Pandey
Anirudh
(Expert) 24 April 2012
Dear Mr. Shonee,
I appreciate that you are not well versed in Service Tax laws. Therefore your 'Thumbs UP' does not carry conviction and any weight.
The question posed by Mr. Anullya Pandey is a very tricky one.
If his company has been engaged for providing the service of diesel filling in Towers, then the said service cannot be provided without the requisite diesel. If that be the case, how can the value of the service will not include the value of the 'diesel'?
In fact before giving any view on this matter one has to really go through the contents of the Agreement between the parties. Without that giving any view will be highly hazardous.
