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 liability on works contracts hinges on supplier-paid excise and valuation rules determining taxable service value.
Service tax liability on galvanizing works depends on whether the principal supplies materials and pays excise duty; if so, service tax is not attracted. Otherwise the contractor may be liable as a Business Auxiliary Service. Valuation can be on the net amount after deducting materials transferred per VAT treatment; where VAT is treated as paid on a portion of the value, service tax may apply only to the remainder under the relevant notification. Registration and exemption thresholds determine when registration and exemption relief must be applied.