Service tax on erection commisiong

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Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 Dear,

I am working with organization where is bussiness of Supply Installaiton Commissioning of Items. on that if we recieved the Consolidated Work Order from Client & we have our internal working of Supply & INstallation Value. than on that case can we pay Service Tax @ 10.30% on Installation value or we have to pay Service tax @ 4.12 % on total order value.

Pls guide.

Regards
Nitin

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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20 September 2011 In my view INVOICING pattern would be the basis for charging the Service Tax.
For Supply portion invoice may be separately raised against the same WO alongwith applicable VAT/commercial tax, as may be applicable. Similarly for the remaining portaion of contractual obligation against the same WO, separate bill may be raised with charging of Service Tax. Cumulative total taken together of both the bill will be aggregate of WO.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 Dear, but as per contract terms we need to charge WCT (Sale tax) as per applicable rates on total order value.

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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20 September 2011 WCT becomes applicable where material cant' be distinguised from the other portion of services, etc.
If invoicing is made for supplies portion with VAT charge and for remianing part of Service with Service Tax, don't think WCT will be attracted.