A private Limited Company "X" has got a contract for lying of railway lines. "X" subcontracted to "Y" ( a private limited company) the whole work. "Y" requires ballasts (small stones to make the base on which the lines are to be laid. These are made out of crushing the big size stone boulders).
1. "Y" made an agreement with "Z" ( a private limited company) to supply the boulders with local VAT.
2. "Y" made another agreement with "Z" for crushing such boulders to ballast.
IF "Z" is liable to pay service tax for crushing such boulders to ballast?
Regards,
CA Mohammad Ayub
CAclubindia
