Category - "telephone cable" and applicability of service tax

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....ategory - "telephone cable" and applicability of service tax<br> Query (Issue) Started By: - sunil mehta Dated:- 18-8-2006 Last Reply Date:- 11-8-2011 Service Tax<br>Got 2 Replies<br>Service Tax<br>Dear Sir, A company gets work-order to lay down 'telephone cables' underneath the road surface in different areas.The 'tel.cables' and machinery for digging are supplied by the main service receiver. 1)....

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....The company has to 'dig' out the road surface(excavate the ground) 2)& then it lay down the telephone cables at a predetermined depth under ground 3)and then re-surface' it('back-filling' of earth mud) after job is over. service receiver pays the company on the basis of 'length kms.'work completed.Machines used in 'digging'/resurfacing ' road is supplied by service receiver. or taken on hire by th....

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....e company. Note:The rates quoted for both the work i.e.excavation of earth (for cable laying) and actual laying of cables & back-filling of earth are separately given in work order. The company either(i) employs its own labour or(ii)It takes labour work force from labour supply contractor or(iii)Sub-lets part of the work to another contractor. Query:1)Under which category the work of : a)excavatio....

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....n work i.e digging of earth/road will be covered/ b)actual cable laying under ground and 'back-filling' of earth work will be covered? c)what about ser.tax applicability to sub-contractors(may be 2 or 3sub-contractors)? Reply By Surender Gupta: The Reply: The service mentioned in the query is falling under “Erection, Commissioning and Installation” services. Further sub-contractor is not exem....

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....pt from service tax. Reply By chandrasegar gurusamy: The Reply: service tax is not applicable for cable laying activities .. Dept circular 123/2010 dated 24.05.2010.. Punjab and Haryana high court verdict ..Rajeev electricals Vs CCE chandigarh C.E.A No 64 of 2008..(2010-TIOL-438-HC-P-H-ST) CESTAT ,Kolkatta Baba Constructions Vs CCE ranchi.. etc may be referred.<br> Discussion Forum - Knowledge....

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