Service tax input
This query is : Resolved
14 August 2013
We are a pvt. ltd. co. and engaged one individual, sole proprietorship concern to a contract of piling work for foundation of building. The contract is purely on labour job. we pay him on the basis of no. of pile . the contractor was now registered under S.T. and clam @12.36% on the amount of billing additionally.My question is?
1. Is the purely labour job on construction of piling/civil structure is applicable as Taxable Service? if it is taxable then what is the nature of Taxable Service? Is it fail under Manpower Supply? Note that we make a contract with the above contractor for piling, and the labour make piling under the supervision & control of the said contractor.We only paid him on the basis of no. of pile executed by him.
2.In My contractor ST-2 shown that he registered under Construction of Commercial Complex. But piling is constructed for construction of residential complex. If we pay S.T. to the contractor,is Input credit available to me? as it is not mandatory to check labour contractor S.T. to available input credit. Is we request to the contractor to intimate S.T. department to include new taxable service in his ST-2.?
3. Is any S.T. paid during construction, but before collecting S.T. from customer after construction eligible Input Tax Credit. Say we paid S.T. on input services on the time of construction, but there is no output S.T. liability at the same time. liability arise when the construction completed/sale agreement made/advance collected from customer. Ifs we adjust in hand input tax credit from my future liability?
Kindly explain ..thanks in advance.
1. Is the purely labour job on construction of piling/civil structure is applicable as Taxable Service? if it is taxable then what is the nature of Taxable Service? Is it fail under Manpower Supply? Note that we make a contract with the above contractor for piling, and the labour make piling under the supervision & control of the said contractor.We only paid him on the basis of no. of pile executed by him.
2.In My contractor ST-2 shown that he registered under Construction of Commercial Complex. But piling is constructed for construction of residential complex. If we pay S.T. to the contractor,is Input credit available to me? as it is not mandatory to check labour contractor S.T. to available input credit. Is we request to the contractor to intimate S.T. department to include new taxable service in his ST-2.?
3. Is any S.T. paid during construction, but before collecting S.T. from customer after construction eligible Input Tax Credit. Say we paid S.T. on input services on the time of construction, but there is no output S.T. liability at the same time. liability arise when the construction completed/sale agreement made/advance collected from customer. Ifs we adjust in hand input tax credit from my future liability?
Kindly explain ..thanks in advance.
15 August 2013
1. The work of Piling as described by you is purely a labour contract and hence does not satisfy the the definition of works contract. It is a Job work service. Since, workers are in control and supervision of the contractor, it is not man power supply contract. The contractor is right in charging 12.36%
2. Input credit is available to you irrespective of the fact that in contractors' registration the service is not specified,
3.You will be able to adjust the credit available at the time of payment of service tax as and when it becomes 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
2. Input credit is available to you irrespective of the fact that in contractors' registration the service is not specified,
3.You will be able to adjust the credit available at the time of payment of service tax as and when it becomes 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
19 August 2013
Pure labour contract if taxable service, then under which nature of this taxable service fail under S.T?
19 August 2013
Pure labour contract if taxable service, then under which nature of this taxable service fail under S.T?
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