TaxTMI 
TaxTMI 
TaxTMI 
Liability and applicability of service tax
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....iability and applicability of service tax<br> Query (Issue) Started By: - sunil mehta Dated:- 18-12-2007 Last Reply Date:- 18-12-2007 Service Tax<br>Got 1 Reply<br>Service Tax<br>Dear Sir, A proprieto....
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....ry firm gets order from a ltd. co. to 'prefabricate,sell and hand over Manhole/Handhole as per specifications & drawings given by ltd.co. i)Raw materials like cement,steel etc are 100% to be purchased....
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.... by proprietory firm(i.e.processor ). ii)Proprietory firm gets this work done through contract labourers. iii)Finished goods to be delivered at site of ltd.co. iv)sales price is fixed by ltd.co which ....
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....is inclusive of material cost+ fabrication cost + transportation cost)excluding service tax. v)Activity of fabrication is done only on such orders.It is not a regular business.If order gets cancelled ....
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....then 'Manhole/Handhole may or may not be saleable in open market. Query:1)Whether above activity of proprietoy firm is subjected to ser.tax or excise duty ? ii)sales price is inclusive of transportati....
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....on.Who isliable to ser.tax ? Reply By Surender Gupta: The Reply: From the query it appears that the transaction is liable to excise duty and not service tax. And once, it is decided that the activity....
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.... is manufacturing activity and liable to excise duty, the burden of discharging excise duty is on the Manufacturer i.e. proprietory firm. However, the same may also be eligible for SSI exemption.<br> ....
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