Is Service Tax applicable on Material Cost ?

 

Dear Experts.

Our  Vendor ( For Job-work) is charging CST on material cost &  Service Tax  on Both ( Material + Labour ) in the same invoice. While questioning they replied that, the material they have utilized was cenvatable and that's why it will attract service Tax . Can anyone Suggest me whether service Tax is applicable on material cost ? No doubt we are taking credit on it but it effects our funds application.

Regards

GHOSH SUPRIO

Replies (1)

X entity (Separate Entity as a Trust)  is providing various Skill enhancement training to various students. X entity (Trust )  is also providing study material during the training course and the same is charged separately in the invoice.

X entity  is charging service tax only on training fees  portion and not on cost of study material supplied.

Kindly advise regarding changeability of service tax on cost of study material.

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