Applicability of service tax

CA. Rashi Goyal (Chartered Accountant) (512 Points)

25 August 2011  

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.