SERVICES PROVIDED TO EXPORTER

[LAXMIKANT ARORA]

Dear Sir,

 

A registered service provider has provided fabrication services to an exporter ( who is not an exporting unit in SEZ).

Now I want to know whether these services are exempt or any input refund by the exporter can be claimed or not in the following cases:

 

1. When only services are provided.

 

2. When services are provided as well as goods used  are also provided by the service provider in works contract

 

I also want to know WCT taxability in the abovesaid case.

 

In anticipation for your reply.

 

 

THANKS & REGARDS

AI Summary

Fabrication as manufacture: central excise or service tax applies; WCT charged on service component, with presumptive allocation.
If fabrication results in a new distinct product it is liable to central excise irrespective of raw material ownership; if it does not amount to manufacture, Service Tax applies unless the principal discharges duty under the duty-discharge mechanism. For works contracts or where goods are supplied with services, Service Tax is imposed on the service component measured either by actuals or by presumptive allocations (commonly 40, 60, 70 percent depending on the transaction).