Service Tax

[Sahil Arora]

Whether a manufacturer who is manufacturing the excisable products and is paying duty is also laible to pay service tax incase it appoints the maintenance and handling contractor for selling its goods on its retail outlets.

AI Summary

Clarification Sought on Manufacturer's Liability for Service Tax in Maintenance Contracts Under Excise Duty Context A discussion on a forum addresses whether a manufacturer paying excise duty is also liable for service tax when appointing a maintenance contractor for retail outlets. One participant clarifies that the manufacturer is not liable for service tax if the contractor handles maintenance and invoices with service tax. The manufacturer can claim input service credit upon payment. Another participant queries about a specific contract with a petrol pump, where the manufacturer did not reimburse service tax, leading to a notice for unpaid service tax, interest, and penalty. The query seeks clarity on liability for service tax payment between the contractor and the corporation.