19 February 2015
If a service provider added 1% of labour charges as Tools and Tackles in his bill. and charges Service Tax on (Labour charges+Profit earned+Tools and Tackles) then it is clear that Service tax is to be levied on Labour charges and profit earned but whether service tax is applicable on Tools and Tackles or not (Which is estimated to be 1% of Labour charges). Please opine on the same.
19 February 2015
Service tax applicable on charges collected for use of tools and tackles. “Section 65 (105) “taxable service” means any [service provided or to be provided], - [(zzzzj) to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances;]”