Interim order -

[Suhit Aggarwal]

What is the current view on leviability of service tax on value of material supplied by service receipient to contracor under category ' Commercial or industrial construction services' to be included in 33%. There was interim order of Madras High Court in L&T v UOI. Is there any final outcome in this regard? Please advice.

[Surender Gupta]

You may take the help from the decision of delhi high court in the matter of ERA INFRA ENGINEERING LTD. Versus U.O.I reported in 2008 TMI - 4494 - HIGH COURT OF DELHI

AI Summary

Service tax on recipient supplied materials may be includible in taxable value for commercial or industrial construction services; precedent cited. Leviability of service tax on the value of materials supplied by the service recipient to the contractor for Commercial or Industrial Construction Services is posed as the central legal question: whether such recipient supplied materials must be included in the taxable value when determining the service component of the contract price, with reference to an interim order and a reported higher forum decision addressing the issue.