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Dear Freinds
What will be the applicability of Service tax vis-a-vis sales tax in a work order- For installation of 100MT capacity of weigh bridge on BOT basis in a Power plant. (Power plant is selling fly ash to cement plants and transporters are engaged in lifting the fly ash from PP, trucks are to be weighed in the said weigh bridge) Now the contractor has to buy a weigh bridge at a cost of Rs 16 Lacs and install it in PP, in turn he will be allowed to operate the weigh bridge for 5 years and recover Rs 36/- per truck directly from truck drivers in cash at the time of weighing, (without weighing trucks are not allowed to lift the fly ash). After 5 year the WB shall become the property of PP.
Thanks & regards
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CAclubindia
