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Applicability of service tax to engineerig frim.

Service Tax (Legacy) 1063 views 5 replies

Whether the service tax is applicable for the following.

The person is having engineering work shop. where 1) He repairs the parts of machinery supplied by the companies.  2) Make parts as per the designe supplied by the co. ( e.g . gare of a machine)

Replies (5)

First of all, your service category comes under works contract service category of service tax and not falled udner any of the negative list. So you have to register with service tax.

 

Government has given some monetory limit before which you need not to be registerd. You have to get registered for service tax once you crosses your service income above Rs. 9 lakhs. Government is very much happy if you take registration even before crossing taxable service value. 

 

Thanks and Regards,

 

Manoj B. Gavali

agree with Mr. Manoj.

If you are providing pure services and no materials is involved which looks the case based on your post for point 1 and for point 2 yes work contract would be more suited.

 

1 point- it is repair and maintenance service.

2 point- the person is doing job work.so excise duty is payable on it.

correct me if i am wrong.

Originally posted by : CA tarannum khatri
   

From reading of  Management  Maintanance & repair service it seems that it is for some sort of fixed contract for spesific period, how ever in the given case the person receives part of machines for repair from various clients, & they dont have any perodic contract for repair.

e.g Recives blade of suger factroy for sharpnin the blad. or receives block of engin to bore or to reduce the cup size by fillig welding etc etc. 
 


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