Sir, We are doing testing and re-painting of LPG cylinders for PSU oil companies like IOC, BPC ETC after entering into an agreement with the company..We do hydrostatic and pneumatic testing for each cylinder received by us and if the tests are passed, then we apply fresh paints to the cylinders and return back to the company. We purchase all the consumables like paints, thinner, teflon tapes etc and the oil companies do not provide us any material. Pl clarify :
1. Under which category does our services fall - Works Contracts or Management, Repairs and Servicing ?(IOCL is insisting us to pay Service Tax under Works Contracts category)
2. The available Abatements in that particular category and whether CENVAT credit can be utilised by us for the Excise Duty paid by us while purchasing Paints ?
Mallikarjuna Reddy, Visakhapatnam
CAclubindia
