Liability of service tax on services executed

[Chalapathy Rao Marthy]

Dear Sir, My client is engaged in the business of Galvaniging articles of iron and steel and is liable for Works contract tax as per AP VAT Tax. Whether he wiil be liable for service tax on services involved in execution of works contact if yes then please clarify : a. Valuation of service b. due date for registration c. from when liablity commences.

AI Summary

Service Tax Applicability on Galvanizing Works Contracts: Key Insights on Registration, Turnover Thresholds, and Valuation Methods A client engaged in galvanizing iron and steel articles is questioning the applicability of service tax on works contracts. One response indicates no service tax liability if the principal pays excise duty, but suggests registration is needed once turnover thresholds are reached, with exemptions available. Another response highlights that service tax may not apply to composite works contracts under certain conditions and discusses valuation methods, suggesting service tax is payable only on a portion of the value if VAT is paid on the remainder. A third response requests additional details for further clarification.