Steel fabricator services

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2012 Dear Friends,

My client is a steel fabricator. He has contracts with supply of material and without material. In case, his contract involves material as well as labour, it will fall under work contract services. But in case, the material is not involved, only labour part is involved i.e erection / installation services then in which category of service will he be covered? I am confused between the following services:

1. Erection, Instalation & Commissioning.

2. Repair & Maintenance Services

3. Business Auxilliary Services

Please share your views and suggestions.

Thanks & Regards

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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13 February 2012 It appears to be covered under first category of service i.e. errection & commissioning. IF there is an AMC then it will be covered under Repair & Maintenance. But It cannot be covered under Business auxiliary service

Further if service provided also includes transfer of property in goods in the execution of works contract and VAT is payable then, it will be classifiable under 'works contract service.

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2012 Thanks Mr. Nikhil.

On my further analysis, I found one more service ie. commercial and industrial construction where such fabrication services are provided in regard to commercial and industrial construction. I feel that will be more appropriate.

Rgds.

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