Clarification

AJAY (Querist) 12 March 2012 This query is : Resolved
My company wants to get repair some of the components at the vendor works outside the state. The bidder is asking Rs. X for material cost and Rs. Y for the services cost required for the repair of the material. The bidder is also asking CST @ 2% against "C" form on the "X" and service tax on "Y".

In this case there is not physical movement of the material from one state to another as the material required for the repair is used at the works on the bidder situated in other state and only repaired product is transported back from one state to another.

In view of above, the clarification is required whether form "c" can be issued on the material cost or not, if not then whether the complete repair cost (material + services) is to be covered under the service tax.

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ajay sethi (Expert) 12 March 2012
your company can afford legal fees . contact a local lawyer

Guest (Expert) 12 March 2012
Sales tax (VAT or CST, as the case may be) is applicable on the materials used and the cost of service would attract service tax.

Shonee Kapoor (Expert) 12 March 2012
Rightly said by Ld. Mr. Dhingra.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

Raj Kumar Makkad (Expert) 12 March 2012
I also endorse the views of sethi.

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