Dear All
One of our client has awarded composite contract From Indian Navy for setting up of Fire Fighting Training Facility [FFTF].
Since contract is indivisible. Client has opted to discharge service tax liability under composite scheme of ‘Work Contract Tax service’. However few items/goods will be manuctured in-house in client factory which is excisable goods and liable for excise duty. Since client is government origination they will be submitting excise exemption certificate, Hence there is no physical outflow on account of Excise duty.
Query.
Excisable Goods which is supplied as part of work contract tax category (composite scheme). Whether company has to levy Excise duty and /or Service tax (under composition scheme)?
OR
While discharging service tax liability under work contract tax category [ composition scheme], whether value of excisable goods on which excise duty paid is to deduct from total contract value and pay service tax under work contract tax category(composition scheme) only on balance amount?
CAclubindia
