service tax on installation charges received

HI Kaya,

here is the text from the finance act

According to section 65(105)(zzd) "taxable service" means any service provided or to be provided to any person, by a erection, commissioning and installation agency in relation to commissioning and installation;

65(39a)“erection, commissioning or installation” means any service provided by a commissioning and installation agency, in relation to,—

(i) erection, commissioning or installation of plant, “machinery, equipment or structures, whether pre-fabricated or otherwise” or

(ii) installation of—

(a) electrical and electronic devices, including wirings or fittings therefor; or

(b) plumbing, drain laying or other installations for transport of fluids; or

(c) heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work; or

(d) thermal insulation, sound insulation, fire proofing or water proofing; or

(e) lift and escalator, fire escape staircases or travelators; or

(f) such other similar services;

For circulars,case laws and other details refer this link below

https://servicetaxonline.com/content.php?id=178#Scope

Hope this should serve ur purpose.

Regards

Prasad R

Ya... Mr Prasad is rit.....

Erection, Installation & Commissioning

Definitions

"Commissioning and Installation Agency"means any agency providing service in relation to commissioning or installation, [Section 65(29)]

"Erection, Commissioning or Installation" means any service provided by a commissioning and installation agency in relation to erection, commissioning or installation of plant, machinery or equipment, [Section 65 (39a)]

Cir.No. 79/9/2004-ST, Date: 13/5/2004

I am directed to draw attention to the Circular No. 49/11/2002 –S.T., dated 18/12/2002, whereby it is clarified that the work of Erection and Commissioning is in the nature of services provided by a “Consulting Engineer” and hance taxable under Service Tax. Also in the year 2003 dated 20^thJune 2003, issued from File No. B-3/7/2003-tru, IT Was clarified that charges for erection of plant would not be covered under the Commissioning and Installation services.

   In the light of above conflicting views, several representation have been received in the Board for clarification as to whether

• the charges for erection would be  covered under Services Tax or not?

• the Commissioning or Installation services would be covered under Service Tax under Consulting Engineer service effective from 7/7/1997?

• The issue has been examined by the Board in consultation with the Ministryn of Law and Justice and in this regard I am directed to say that charges for erection installation & commissioning are not covered under the category of Consulting Engineer Services. Commissioning or Installation service will be separately taxable under relevant entry and are not chargeable under Consulting Engineer Services. Accordingly, the clarification issued vide the Circular No. 49/11/2002-S.T. dated 18/12/2002 stands modified to this extent.

regards,

section 65 (105)  "taxable service" means any service provided or to be provided to any person, by a erection, commissioning and installation agency in relation to commissioning and installation;

Thanks

Regards

Aniruddha

TIP

its FREE to all try it !!!

forward dis msg 2al ur frndz
type

ON all_pj_aniruddha

ON FREEintraday

ON TAX_ANIRUDDHA

ON caAniruddha

n send it to 9870807070
1 by 1
its FREE !!!

Hurry !!!

Yes kaya, all the above have given the write explanation..... it will be counted as service for service tax purpose.... kindly let us know what is the exact service about...

agree with shakeel ahmed and prasad R.

The concept behind service tax is to levy service tax on each and every service until it is specifically exempted explained in the Act itself or by certain notifications if it is deemed necessary according to the changed circumstances.

Agree With All Above.

yaa kaya...all the installation charges will be taxed for the service tax purpose..

Regards

Prasad is right.

And,

U can refer this site for clarification:

 https://www.servicetax.gov.in/st-act.htm

agree with all

yap i agree with all

yes kaya each and every installation charges is liable to service tax.n agree with all the explanations so no need to write anything....more.........

Sorry yar

kya hai na ki mene kitne dino se caclubindia open nahi kiya thaisiliye abhi and de raha hu

65(39a)“erection, commissioning or installation” means any service provided by a commissioning and installation agency, in relation to,—

(i) erection, commissioning or installation of plant, “machinery, equipment or structures, whether pre-fabricated or otherwise” or

(ii) installation of—

(a) electrical and electronic devices, including wirings or fittings therefor; or

(b) plumbing, drain laying or other installations for transport of fluids; or

(c) heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work; or

(d) thermal insulation, sound insulation, fire proofing or water proofing; or

(e) lift and escalator, fire escape staircases or travelators; or

(f) such other similar services;