Service tax payable on process loss qty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2014
Our Mining service provider provided excavation jobs and re-handling of boulder from Mines to crusher Hopper.

At the time of crushing 5% process loss and process loss quantity less from bill and claimed net quantity as per order rate and claim service tax after less process loss qty.

My query can we pay service tax on gross qty or after less process loss qty.

Jayant Bothra

Jayant Bothra (Expert)
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11 October 2014 Dear Sir,

As per Section 65B (44) of teh Finance Act, 1994 you will charge service tax on consideration. Since, the consideration will be paid to you net value so you will discharge service tax on net value only.

Thanks & Regards

CA JAYANT BOTHRA
ca.jayantbothra@gmail.com