TaxTMI 
TaxTMI 
Service Tax applicable on Errection or Commission of plant
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....ervice Tax applicable on Errection or Commission of plant<br> Query (Issue) Started By: - Vivek anandhan Dated:- 5-5-2016 Last Reply Date:- 11-5-2016 Service Tax<br>Got 5 Replies<br>Service Tax<br>Dear Experts We are the service provider of errection or commission of plant/machinerry. It is composit service involved electrical items as well as manpower. We are not availing input credit for items ....
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....used for errection or commission. Above service providing through contractor. 100% of work done through contractor. Contractor billing on us separtly for service and material. We are raising service invoice on our Customer with small margin. Whether we have to calculate service tax on entire value(composit value) or any abatment available for exclude material cost. Kindly clarify Reply By KAST....
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....URI SETHI: The Reply: SH.VIVEK ANANDHAN JI, From your query ((100% through Contractor and manner of raising invoice), it appears that manpower is under the supervision and control of Contractor. So as per definition of 'Manpower Recruitment or Supply Agency Services' manpower has not been supplied. The whole liability of discharging ST is on contractor. NO RCM. No abatement in respect of....
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.... this service. Secondly, If your service is provided with material, then it would fall under the category of 'Works Contract Service' and you will be entitled for abatement of 60% from the gross receipt under Notification No.24/12-ST dated 6.6.12 effective from 1.7.12. (Rule 2 A of Service Tax (Determination of Value Rules), 2006. Pure labour cannot be classified under WCS. Reply By KAST....
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....URI SETHI: The Reply: If service is provided without material, it would fall under the erstwhile category of, "Erection, Commissioning or Installation Services" and no abatement is admissible. Reply By Ganeshan Kalyani: The Reply: Sir I agree with the views of Sri Kasturi sir. Reply By Vivek anandhan: The Reply: Sir, Thank you for your clarification It is clear that we can collec....
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....t ST on 40% of contract value as per the notification 24/12-ST dt.06.06.2012. Requested you to confirm that this is effectiv notification, since this notification is not reflected in the effective notification list in TMI. Reply By KASTURI SETHI: The Reply: Sh.Vivek Anandhan Ji, Notification No.24/12-ST dated :- 6.6.12 is in force.Rate of abatement for original works has been same since it in....
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....ception. Highlighted portion is relevant for you.<br> Discussion Forum - Knowledge Sharing ....