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 '

AI Summary

Excise Duty and Service Tax Not Applicable on Precast RCC Louvers Work Order; Turnover Below Rs. 1.5 Crores A service provider received a work order from a company to manufacture, supply, and fix precast RCC louvers and fins at the company's factory. The provider will be paid separately for manufacturing/supplying and fixing. Queries were raised about the applicability of excise duty and service tax. The response clarified that no excise duty is applicable as the turnover is below Rs. 1.5 crores. The fixing work does not fall under 'Industrial & Commercial Construction Service,' so no service tax is payable. The Central Excise Tariff code for the products is under Chapter 68 of CETA 1985.