ED & Service Tax on Ready Mix Concrete

[swamy k]

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

AI Summary

Clarification sought on excise duty and service tax exemption for on-site ready mix concrete in power plant project. A user inquired about the applicability of excise duty and service tax on ready mix concrete (RMC) for a power plant construction project. The user planned to contract an RMC supplier who would mix the concrete on-site or supply it from their plant. The user, lacking excise registration, sought clarification on potential tax exemptions, particularly concerning materials supplied by the contractor. In response, another participant suggested that the RMC might be exempt from both central excise duty and service tax, based on the specifics provided.