SALE OF STEAM

[vishal sharma]

One of my client is having surplus steam generated, which it intends to sell.

Whether service tax will be applicable on it.

Thanks

[Rama Krishana]

In my first view, i am unable to convince myself about the levy of service tax on sale of surplus steam.

[YAGAY andSUN]

Sale of Steam will attract VAT as it falls under the category of goods.  Service Tax will not be applicable on such transactions.

[KASTURI SETHI]

UPDATION

Steam is excisable goods falling under Chapter 28 of Central Excise Tariff Act, 1985 attracting NIL rate of Central Excise duty vide Notification No.12/2012-CE dated 17.3.12 as amended. Hence no Service Tax.

AI Summary

Steam Sale Not Subject to Service Tax; Classified as Goods with NIL Excise Duty Under Chapter 28 of Tariff Act. A client intends to sell surplus steam and inquires about the applicability of service tax. One response suggests that service tax may not apply, as steam is categorized as goods, thus attracting VAT instead. Another reply clarifies that steam is considered excisable goods under Chapter 28 of the Central Excise Tariff Act, 1985, but it currently attracts a NIL rate of Central Excise duty per a specific notification. Therefore, service tax does not apply to the sale of steam.