One of our client is in the business of on road under ground trenchless cable laying for telecom companies. Material is provided by the telecom company to the client and their job is to lay the cable under ground. They charge only labour charges which is pre-decided on per metre basis. Kindly clarify the applicability of service tax on this kind of service with respect to the latest amendments in this regard. Also please let us know of any abatement in this service.
You are liable to pay service tax under sub-clause 3 of the Category " SITE FORMATION AND CLEARANCE, EXCAVATION AND EARTHMOVING AND DEMOLITION SERVICES " No abatement has been granted to any person liable to pay service tax under the Section.Also refer a case law relating to Reliance Industries Ltd. in respect of valuation.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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