ED & Service Tax on Ready Mix Concrete

[Guest]

Dear Sir,

We need 20000 CMT of ready mix concrete for construction of our power plant. For that we are going to enter a work order contract with RMC supplier. For that we supply cement and water, contractor will fix his machinery at our site to mix RMC and some times he may also supply RMC by mixing at his plant, when ever RMC demand for construction is low.

Ours is power plant construction, no excise registration, so we cant claim any input.

Please clarify, what are the taxes will be levied on RMC? Is that excise and service tax both will be applicable on RMC purchased? Can he (supplier) claim exemption for value material supplied along with his service?

Is that ready mix concrete excisable good and duty payable. I know that RMC amount to manufacture u/s 2(f) of CE Act.

Requesting you all, please clarify with details sir...

Thanking you,

Swamy.K

[Alok Kumar]

Dear Mr.Swamy.k.

 

Looking at the facts of your case it appears to me that the above goods will be exempted from both central excise duty and service tax.

Thanks,

Alok Kumar

AI Summary

Taxation of ready mix concrete: supplier's mixed supply where purchaser supplies materials may be exempt from excise and service tax. Whether supplies of ready mix concrete under a contract where the purchaser supplies cement and water and the contractor mixes onsite or at his plant attract central excise duty or service tax; adviser opines that, on the stated facts, the RMC supplies would be exempt from both central excise duty and service tax.