custom vs service tax

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This query is : Resolved

Devpura Nikunj (Querist)

31 May 2011
Dear All,
pls advice on following

We will be sending the turbine blades to abroad in UK for refurbishment.

(2) Vendor will perform following activates during on the blades by doing following:

(1) Inspecting and servicing the blades
(2) Coating the blades
(3) Replace the damaged tips in blades and
(4) Adjust balancing of blades

The amount to be paid is 22 lac comprising of 18 lac towards service element and 4 lac towards sale of blades noticed during refurbishment

Query

(1) Should we pay Custom duty, if yes whether on whole amount or in respect of import of goods (replacment of blades) on whole amount
(2) Should Service tax be charged on this ?

very urgent pls reply fast

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

03 June 2011 AS PER PROVISION LAID DOWN IN FOREIGN TRADE POLICY PARA2.8(III) AN IMPORTER / EXPORTER ARE EXEMPT FROM THE IMPORT EXPORT CODE IF THEY ARE IMPORT / EXPORT FOR PERSONAL USE / AGRICULTURE PURPOSE.

REFER TO Notification No.9/2009-Service Tax DT. 03.03.2009, SEZ IS EXEMPT FROM SERVICE TAX.

FOR MORE INFO:-
https://www.servicetax.gov.in/notifications/notfns-2k9/st09-2k9.htm

FOR IMPOSING THE DUTY, PROVIDE THE RITC HS CODE NUMBER.

REGARDS,

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