service tax on supply and fixing of precast RCC Louvers and Fins

[sunil mehta]

A small service provider gets work order from a Ltd. Company  for manufacture & supply and fixing of Precast RCC Louvers and Fins in the factory premises of the concern.

1)The service provider will have to manufacture of above 2 products in service provider's premises premises and then supply these products to Ltd Company as per terms in work order.

2)Then service provider will have to do all plastering / providing re-inforcement between louvers & fins/jointing etc. with his own labour and materials (cement etc) at the factory premises of the Company.

The service provider will be paid separate  price for 'manufacture & supply ' and separate price for 'fixing' of above 2 products.As per work order State Vat and service tax will be paid extra ,if apllicable.

In above case two activities are involved viz.manufacture/supply ' & 'fixing' .

NoteThe selliung price of above 2 products of the service provider is less than Rs.1.5 crores during the financial year.His non-excisabele turnover is Rs.NIL.

Query:-1)whether  excise duty will be applicable ?

2)In my opinion service tax will be payable under 'commercial or industrial construction  services on 'fixing' part. Since that 'fixing' labour part involves use of cement/plaster of service provider whether he can take abatement @67% or he should charge service tax @10.3% on full portion of 'fixing ' charges?

3)What would be the situation if the service provider manufactures 'precast RCC Louvers and Fins ' in the premises of that Company?Whether excise duty is applicable ?

4)Can i get Central Excise tariff code for 'Precast RCC Louvers & Fins '

[Suresh Kumar Agareal]

Answers to your querries are as under:-

Qerry No.1:- Since turn over of all excisable goods is less than 1.5 crores, no excisse duty is payble

Qerry No.2:- In my openion fixing work does not fall within the mischief of "Industral & Commercial Construction Service" as such no sservice tax is payble.

Qerry No.3:-Reply to tis querry is covered under reply to querry No.2

Qerry No.4:- Central Excise Tariff code is Chapter 68 of CETA 1985

S.K.Agarwal

AI Summary

Service tax applicability on fixing works clarified: fixing of precast items held outside construction service scope and not taxable. Whether supply and onsite fixing of precast RCC louvers and fins attract excise duty or service tax: manufacture and supply from the provider's premises with separately priced onsite fixing that includes provider-supplied labour and materials. Advisor states excise duty is not payable if turnover of excisable goods is below the statutory threshold. Advisor further concludes fixing work does not fall within Industrial and Commercial Construction Service and thus service tax is not chargeable on the fixing component; Central Excise tariff classification indicated in the original reply.