TaxTMI 
TaxTMI 
we are providing installation of equipments like, wiring of coaches, fitting of lights, fan etc in coaches and testing of coaches for coach to run the operations. all items and equipments are provided by Indian Railways and we with our technical skills, our people, and consumables, we execute the work. will this so called JOB WORK or services will fall under the definition of JW and what rate of tax shall be applicable, 12% or 18% w.e.f 01.10.2019. only after we finish our work, and further work by railway people, the coach manufacturing can be completed wholly. in erstwhile service tax, these job work services, was exempted under clasue 30(C) of notification 25/2012. any job worker or intermediary process, amounting to manufacturing activity........like that.
installation service, pure labour contract - JOB work - 12% or 18% - reg
10 Dec 2019 
5 Replies 
2083 Views Asked by
Tax classification of installation services likely treated as standard installation service, attracting the higher GST rate under revised rules.
Installation and testing of supplied railway equipment performed using the supplier's labour and consumables raises whether the activity is job work (a manufacturing service on goods owned by others) eligible for the concessional job-work rate. The documented view is that such installation does not ordinarily constitute manufacturing service and should be classified as other installation services, thereby attracting the standard GST rate rather than the reduced job-work rate. (AI Summary)
Installation and testing of supplied railway equipment performed using the supplier's labour and consumables raises whether the activity is job work (a manufacturing service on goods owned by others) eligible for the concessional job-work rate. The documented view is that such installation does not ordinarily constitute manufacturing service and should be classified as other installation services, thereby attracting the standard GST rate rather than the reduced job-work rate. (AI Summary)