28 September 2013
Please tell me ,Which option would be better and is my calculation correct? for my client
Nature of service : Bus body Fabrication on New chassis supplied by bus owner
Total amt charged Rs. 1,000,000 per bus
Raw material+Tolls and other cost by our client is Rs. 700,000 Vat Input on above (5%+13%) Rs.90,000 Aprox Labor charge paid to contractor for this work Rs.100,000
Material supplied by bus owner him self of Rs.150,000(What would its treatment ?)
Profit Rs. 50000.00 Vat Payable @ 13% on 10,00,000 i.e.Rs.130000
MY SOLUTION:
OPTION 1 Rule 2A (i)of Service Tax (Determination of Value) Rules, 2006
Total amt charged Rs. 1,000,000 Less : value of property in goods transferred Raw material used by our client+VAT Rs.790000 Labor charge paid to contractor -nil
Value of service portion Rs.210,000
S.Tax @ 12% on Rs. 210000 = Rs. 25200
OPTION 2 Rule 2A (ii)of Service Tax (Determination of Value) Rules, 2006
29 September 2013
Dear mr. Jangid ,your both the versions are not correct. In fact body building is a process of manufacture and therefor covered under the negative list. No service tax is payable. disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
30 September 2013
Bus body building, in my opinion, is not a taxable service, it is part of Negative list. ****For clarification and Premier service pl contact group.blr@gmail.com
*Disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case.
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