Service tax on powder coating charges

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2015 WE THE COMPANY PURCHASE ALUMINIUM SECTION FROM COMPANY AND SEND IT TO THE INDIVIDUAL FOR POWDER COATING ON IT. WHETHER SERVICE TAX IS APPLICABLE ON POWDER COATING CHARGES? AND WHAT PERCENTAGE OF SERVICE TAX SHALL BE CHARGED?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 May 2015 Service tax applicable if no excise duty is paid on final product.
If powder coating amounts to manufacture, then it will not attract service tax at all

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2015 CAN YOU TELL ME THE PERCENTAGE OF SERVICE TAX ON POWDER COATING AS SERVICE PROVIDER CHARGE ONLY 40% OF 12.36%?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 May 2015 The service provider correctly charging service tax. It is 40% of 12.36% up to 31-05-2015 and from 01-06-2015 it is 40% of 14%.

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Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2015 BUT WHY THEY CHARGE 40% OF SERVICE TAX AS IT IS EXECUTION OF ORIGINAL WORKS UNDER WORKS CONTRACT? OR OTHERS SERVICE CATEGORY?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 May 2015 It is execution of original works under works contract.

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2015 EXECUTION OF ORIGINAL WORKS UNDER WORKS CONTRACT MEANS = i> all new constructions; ii> all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable.

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