Rate of Service Tax on Earth Cutting.

[Samik Chaudhuri]

I would like to know the Rate and calculation of Service Tax on Earth Cutting for expansion the manufacturing unit.

With thanks

Samik Chaudhuri

[Rajagopalan Ranganathan]

Dear Shri. Chaudhri,

Earth cutting is a service and service tax is payable @12.36% on the gross amount charged for the provision of the service.

[Samik Chaudhuri]

Thanks a lot Sir.

Samik.

AI Summary

Service tax on earth cutting applies to gross service charges for excavation during manufacturing expansion works.
Earth cutting performed for expansion of a manufacturing unit is a taxable service; service tax is payable on the gross amount charged for the provision of the service and has been applied at a consolidated rate of 12.36% on the gross service value.