Dear Sir,
1) If we purchase a machinery parts and this price is including the installation charges also. and the material provider person comes our factory and install this parts in our machine.
In the above case service tax will attract under reverse charge mechanism or not for service recipient ?
2) some service provider repairs our split AC in our office and with material in that case service tax will attract or not ?
Can any one explain me the regarding Work Contact under reverse charge mechanism with example in which type of service falls under work contract and liable to pay service tax as a service recipient
Regards
Swapneswar Muduli
Debate on Service Tax Applicability: Reverse Charge on Machinery Installation and AC Repair Services Under Works Contract or Not? A discussion on whether service tax applies under the reverse charge mechanism for machinery installation and AC repair services. One participant argues that both scenarios involve a works contract, requiring partial service tax payment by both the provider and recipient. Another participant disagrees, classifying these services as 'Management, Maintenance or Repair Services,' not subject to reverse charge, as they involve distinct sale and service elements. They argue that service tax should not apply to the sale of parts, only the labor component. The discussion highlights differing interpretations of tax regulations and the need for case law to support positions. (AI Summary)
TaxTMI 
TaxTMI 
