TaxTMI 
TaxTMI 
TaxTMI 
Service tax coverage on steel fabricators
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....ervice tax coverage on steel fabricators<br> Query (Issue) Started By: - Atul Gupta Dated:- 11-2-2012 Last Reply Date:- 12-2-2012 Service Tax<br>Got 3 Replies<br>Service Tax<br>Dear Friends, My client is a steel fabricator. He has contracts with supply of material and without material. In case, his contract involves material as well as labour, it will fall under work contract services. But in cas....
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....e, the material is not involved, only labour part is involved i.e erection / installation services then in which category of service will he be covered? I am confused between the following services: 1. Erection, Instalation & Commissioning. 2. Repair & Maintenance Services 3. Business Auxilliary Services Please share your views and suggestions. Thanks & Regards Reply By NEERAJ KUMAR, RANCHI:....
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.... The Reply: In my opinion this will fall under BAS. Reply By ROHAN THAKKAR: The Reply: * If the Steel fabrication is done on behalf of the client, then the said service will fall under 'Business Auxiliary service'. * However, where the services provided is not behalf of the client, but the services are provided in independent capacity, in such as case, the service of steel fabrication will ....
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....fall under 'Erection, Commissioning and Installation service' * The term fabrication is an industrial term refers to building metal structures by cutting, bending, and assembling.' * "Erection, commissioning or installation" means any service provided by a commissioning and installation agency, in relation to,-- (i) erection, commissioning or installation of plant, machinery, equipment or str....
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....uctures, whether pre-fabricated or otherwise; or (ii) installation of-- (a) electrical and electronic devices, including wirings or fittings therefore; or (b) plumbing, drain laying or other installations for transport of fluids; or (c) heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work; or (d) thermal insulation, sound insulation, fire pr....
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....oofing or water proofing; or (e) lift and escalator, fire escape staircases or travelators; or (f) such other similar services;'; * The term '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; ....
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.... (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 ....
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.... Thus, looking to above provision, in my opinion, the above service falls under 'Erection, commissioning or installation ' Regards, Rohan Thakkar Reply By Naveed S: The Reply: Yes, the activities undertaken by your client definitely falls under the category of Erection, Instalation & Commissioning services.<br> Discussion Forum - Knowledge Sharing ....