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service tax on fabrication work

chartered accountants

Sir, our client was provided fabrication and erection & installation services to his client for foundation of thermal plant. He is having work order mentioning both the item. wherther service tax is applicable on fabrication work. Please provide the details.

thanks in advance

Chartered Accountant

Dear Vishnu,


1) Service Tax is applicable on Erection & Installation Services as per section 65(105) (zzd) of the Service Tax Act, 1994. Service Tax to be levied when the Gross Receipts go above the specified limit (ie Rs. 10 Lacs)


2) But no service tax is applicable on Fabrication work.






Fabrication is a manufacturing activity and hence no servcie tax is leviable.

Practicing CA

I believe that Fabrication is an activity for erection and installation hence service tax needed to be charged.

chartered accountants

Thank You Devendra, Nirav and Saiyumkhan. I need some notification or case law or any other material for not applicable of service tax on fabrication. I think fabrication is separate from errection, commissioning and installation services.


as fabrication is a contract to build the goods as per the design/ sample/ drawings provided by the party, so it will be taxed under works contract. 


remember if the fabricator does not pay service tax then it would amount to manufacture and excise would be leviabl on materials + job charges



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