If Material and Service bill give separate

[Asked by Guest]

Dear Sir,

We are a manufacturer and we doing one ducting line for pass the smoke of our company the vendor doing this work with material and service. If the vendor will raise the bill material and labor combined then it will be attract for service tax under RCM as this vendor is proprietor.

if Vendor give the bill separate bill for material and separate for labor for installation in this case it is attract service tax under RCM or not.

and it is eligible for input credit or not ?

AI Summary

Works contract valuation dictates service tax on the service portion; separate material/service bills do not defeat RCM liability.
Valuation and incidence under a works contract govern service tax: the service portion equals the gross contract price less value of goods or, if not determined, is taken by rule (forty percent for original works; seventy percent for other works). A combined invoice attracts service tax on the service portion; separate invoices should bear service tax on services and VAT on materials. Separation of bills does not per se change the works contract character, and reverse charge liability on labour/service charges may remain; input credit entitlement is questioned but not conclusively addressed.