Applicability of service tax

A company is engaged in amnufacturing of machines and it also provides servive relating to repairs and annnual maintainence contract for the machines.

The company delivers the machine at the buyers premises and it also provided the services relating to the installation. It charges the excise duty on the cost of machine and installation charges.

Query: Did company laible to pay service tax on installation charges when it is paying the excise duty on the same amount and intallation is a part of the sale of machine.

 

Replies (4)

have they taken service tax RC for Goods transport Agency.

Whether they are taking service tax credit for inputs which they receive.

Regards

Sunil Kumar
 

If installation charges are included in the value for excise, service tax is not payable on such charges.

Query: Did company laible to pay service tax on installation charges when it is paying the excise duty on the same amount and intallation is a part of the sale of machine.

answer:company not liable to serivce tax on installation charges.installation charges are included in the value for excise.

             

I have the contradict case of isub khan answer,

 

In Lincoln Helios(india) Ltd VS CCE(2006), it was held that service tax is payable on charges of erection and commissioning even if assesse has paid excise duty on entire value of contract inculding erection  and commisioning charges.

 Please provide the caselaw in support fo your answer.

 

Thanks,

Anil Kumar Meena

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