Service tax registration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2013 Dear Sir,
I am fabrication works Contractor. I am doing / Making Fabrication Steel sheads and structure, pipe line work etc at Sites. we taking contract without material basis. I would like to take service tax registration.

So pl suggest me we will take ST registration in which service.

thanks

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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19 November 2013 since your contracts are without materials, and mainly for provision of services, the best head of service would be SITE PREPARATION SERVICE. This service includes all soil work, excavation, fabrication, etc, at a site before commencement of operations at the site.

There is no abatement available under this head nor is RCM applicable. The liability for collection and payment of 12.36% ST vests only with you.

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 Thanks Sir,
Sir, I already Take ST Registration in "WORKS CONTRACT SERVICE" it ok are not?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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25 November 2013 Works Contract Service is where both service and materials are used and an exact classification cannot be made. Further in case of Works Contract only 33% of the invoice is taxable. In case of Site Preparation Service the full invoice is taxable.

I feel that registration under Works Contract Service, given the information supplied by you, may lead to issue of notice for supression and evasion of service tax by the Department. Such notice would usually cover a five year period.

I would still go with Site Preparation Service.

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