Supply of tangible goods Vs Erection,Instalation

[Sumeet Tholle]

Dear Sir,

One of the my client engaged in the business of providing cranes with driver but not registered with dept. and not collected ST also.

He received SCN demanding ST for (2009 to 2014) under Supply of tangible goods for use STGU service.

He is having work orders in following format,

1. Supply of crane with driver on daily/hourly basis- I agree, this covered under STGU service.

2. Job of erection/installation of chimney- Here, we received payment for the specific job and not on hourly/ daily basis.- Can I claim this receipt under Erection, Installation Service and can claim abatement ?

Pl. advise.

Sumeet C. Tholle

CA

[MUKUND THAKKAR]

Sir,

Activity of Installation of chimney covered under service of Erection and Installation. please check your turnover if less than 10 lakhs in specific service or not?

AI Summary

Client Challenges Service Tax Notice: Cranes vs. Chimney Installation; Examines Service Abatement and Turnover Thresholds A client, not registered for service tax, provided cranes with drivers from 2009 to 2014, receiving a show cause notice for service tax under Supply of Tangible Goods for Use (STGU) service. The client seeks to differentiate between services: supplying cranes on a daily/hourly basis, which falls under STGU, and the erection/installation of chimneys, which is paid per job. The client inquires if the latter can be categorized under Erection and Installation Services to claim abatement. The response confirms chimney installation as Erection and Installation service and advises checking if turnover is below 10 lakhs for specific service considerations.