Management Maintenance & repair services

1.In this service is the amount of material, labour supplied reduced from the gross amount(VAT paid on goods and raw materials)

2. In this service is the aggregate amount received is the amount for calculating Threshold Exemption.

3. If the client has not received any service tax from service receiver(Government departmental Contract) should the client pay for serv Tax for last five year on basis of notice and summon issued.

4. Tender amount received on basis of Measurement Book after deducting Sales Tax, TDS, Security Deposit. No specific payment of service tax by department nor any amount billed by service provider.

5. Kindly let me know these things so that I can present my self well before the authority. 

Replies (2)

1.As per Notifivcation 12/2003, if u opt for the same, u can reduce the amount relating to goods and materials and pay ST on the balance subject to the conditions mentioned therein

2. Yes. the total amount (including the value of goods and material) will be taken for calculating the threshold limit.

3. The liability to pay service tax lies with the service provider and not the service receiver in this case. Hence the amount has to be paid if not recovered from the client also.

Please make it clear that you have provided the services to government dept where ST was not payable as per them.

If it is works contract ( composite) then the liability would exist from 1.5.2007 and not earlier. Old contracts also could be argued as not liable but that may require  litgtion nd judicial confirmation

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