TaxTMI 
TaxTMI 
sevice tax on scrap sales
03 Jul 2014 
3 Replies 
13191 Views Asked by
Service tax on scrap not payable when arising from erection and commissioning; commission for sale may attract tax.
Scrap from erection and commissioning is not treated as manufacturing scrap and its sale is a sale of goods not subject to service tax; however, if a taxable service element exists (for example, commission for selling scrap) or liability arises under the reverse charge mechanism, service tax implications may apply and should be assessed on the facts. (AI Summary)
Scrap from erection and commissioning is not treated as manufacturing scrap and its sale is a sale of goods not subject to service tax; however, if a taxable service element exists (for example, commission for selling scrap) or liability arises under the reverse charge mechanism, service tax implications may apply and should be assessed on the facts. (AI Summary)
whether service tax to be pay on scrap arise on errection & commissiong service.. as sales tax is alredy being paid by us on sales of scrap.