Service Tax on purchase of strones and sand

[paresh ayadi]

Sir,

We have given contract to one party for providing us stones and sand at our site...

Whether any service tax liabilities on us under RCM ???

AI Summary

No Service Tax on Stones and Sand Purchases; Possible Tax on Transportation or Commission Under Reverse Charge Mechanism (RCM). A discussion took place regarding the applicability of service tax on the purchase of stones and sand, particularly in relation to Reverse Charge Mechanism (RCM). It was clarified that no service tax applies to the purchase of these materials. However, if the contract includes transportation or commission, service tax may apply. In a composite contract for supply and transportation, it could be considered a works contract, potentially incurring service tax under RCM. If transportation costs are included in the purchase price without separate charges, no additional service tax is required.