TaxTMI 
TaxTMI 
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 ???
Service Tax on purchase of strones and sand
29 Apr 2016 
6 Replies 
6142 Views Asked by
Service tax on purchased materials: inbuilt transport charges generally do not attract reverse charge, separate transport charges may.
Service tax on purchase of stones and sand depends on contract terms: where materials are purchased and delivery is provided with no separate delivery charge, transport costs inbuilt in the price form part of the purchase and do not attract reverse charge; separately invoiced transport or commission services remain taxable and may attract service tax under reverse charge. Composite contracts combining supply and transport may be treated as works contracts, with incidental transport absorbed into material cost and not separately taxable. (AI Summary)
Service tax on purchase of stones and sand depends on contract terms: where materials are purchased and delivery is provided with no separate delivery charge, transport costs inbuilt in the price form part of the purchase and do not attract reverse charge; separately invoiced transport or commission services remain taxable and may attract service tax under reverse charge. Composite contracts combining supply and transport may be treated as works contracts, with incidental transport absorbed into material cost and not separately taxable. (AI Summary)