Name of the service & whether it is taxable service
This query is : Resolved
09 February 2016
One of my clients is doing the business of welding, making of steel windows, take sub contracts etc .
He gives services also with them . In which service it will be categorised & whether it will b taxable.Is rebate available.
He gives services also with them . In which service it will be categorised & whether it will b taxable.Is rebate available.
15 February 2016
Basically your client is rendering three types of services:
(a) Welding - if it is an independent assignment , it is Repairs and Maintenance Service. If it is with materials it is Works Contract Service, Both services are taxable under the heads mentioned. In case it is Works Contract, there is an abatement of 30%. The service provider is liable for paying 50% Service Tax on the abated value at applicable rates. The balance 50% will be paid by the service receiver under Reverse Charge Mechanism.
(b) Making of steel windows, which is not covered under Service Tax but is subject to VAT on sale value and also Central Excise Duty if the operation is manufacture as defined in Central Excise Act.
(c)Taking of sub-contracts would be subject to service tax depending on the nature of services rendered.
(a) Welding - if it is an independent assignment , it is Repairs and Maintenance Service. If it is with materials it is Works Contract Service, Both services are taxable under the heads mentioned. In case it is Works Contract, there is an abatement of 30%. The service provider is liable for paying 50% Service Tax on the abated value at applicable rates. The balance 50% will be paid by the service receiver under Reverse Charge Mechanism.
(b) Making of steel windows, which is not covered under Service Tax but is subject to VAT on sale value and also Central Excise Duty if the operation is manufacture as defined in Central Excise Act.
(c)Taking of sub-contracts would be subject to service tax depending on the nature of services rendered.
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