Service tax on free issue material

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Student (Querist)
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16 August 2011 In works contract, if we received free issue material from client, could it be service taxable?
for example:

Gross bill value 2000/-
Free issue material:
Cement 300/-
Steel 500/-
RMC 200/-
______
1000/-

we are in WCT i.e. 4.12% tax basis

Now the question is, we are calculation WCT on how much amount?

U S Sharma

U S Sharma (Expert)
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16 August 2011 if the free issue materials are provided by client, then how you can issue bill for gross amount?

if you bill for 1000/- then ST payable without consolication or abatement .i.e 10.3% but if you bill for 2000 then 4.12% is payable on whole 2000/-

Student

Student (Querist)
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16 August 2011 Sir we are billing on labour part and we are availing in WCT i.e. 4.12%

There is a act on 2009 that all free issue material is under service taxable, and in that case Steel and cement is taxable but the my question is, the RMC is also be taxable??

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