Hello, I was just wondering if O&M (Operation and maintenance) attracts service tax? The machinery is owned by us but have given away O&M contract to a third party. Does it attract service tax? Thank you
Sandeep (Managing Director) (40 Points)
12 January 2012Hello, I was just wondering if O&M (Operation and maintenance) attracts service tax? The machinery is owned by us but have given away O&M contract to a third party. Does it attract service tax? Thank you
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 12 January 2012
Ye they are liable to service tax under Management, maintenance and repair. But you can take credit if you manufacture dutiable goods or provides taxable services.
Sandeep
(Managing Director)
(40 Points)
Replied 12 January 2012
Thank you Mr. Unnikrishnan Nair,
We do two types, one is fertilizer and is sold domestically. Fertilizers are exempted from all taxes, is service tax applicable in this case too?
The second product is exported which again has service tax exemption. But I guess Service Tax does apply but we have to claim exemption in later stages. Am I correct?
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