service tax on installation of weigh bridge

[Vartik Choksi]

Whether Service Tax is applicable on installation and maintenance of weigh bridge

[YAGAY andSUN]

Yes, under the taxable services of 'Management, maintenance or repair services for  goods, equipments or properties' . Date of Introduction:01.07.2003 (Notification No.7/2003-S.T.dated 20.06.2003).

 “Management, Maintenance or Repair”  means any service provided by—

(i) any person under a contract or an agreement; or

(ii) a manufacturer or any person authorised by him, in relation to,—

(a) management of properties, whether immovable or not;

(b) maintenance or repair of properties, whether immovable or not; or

(c) maintenance or repair including reconditioning or restoration, or servicing of any goods, excluding a motor vehicle;

Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this clause, -

(a) “goods” includes computer software;

(b) “properties” includes information technology software; [Section 65(64) of Finance Act, 1994 as amended]

AI Summary

Installation and maintenance of weighbridges are taxable as management or repair services under Section 65(64) of the Finance Act. A query was raised regarding the applicability of service tax on the installation and maintenance of a weighbridge. The response clarified that such services fall under the taxable category of 'Management, maintenance or repair services for goods, equipment, or properties,' introduced on July 1, 2003, as per Notification No. 7/2003-S.T. The definition includes services provided under a contract or agreement for the management, maintenance, or repair of properties or goods, excluding motor vehicles, as outlined in Section 65(64) of the Finance Act, 1994.