SERVICES PROVIDED TO EXPORTER, Service Tax

[LAXMIKANT ARORA]

Dear Sir,

 

A registered service provider has provided fabrication services to an exporter ( who is not an exporting unit in SEZ).

Now I want to know whether these services are exempt or any input refund by the exporter can be claimed or not in the following cases:

 

1. When only services are provided.

 

2. When services are provided as well as goods used  are also provided by the service provider in works contract

 

I also want to know WCT taxability in the abovesaid case.

 

In anticipation for your reply.

 

 

THANKS & REGARDS

Posts / Replies

[Madhukar N Hiregange]

Fabrication amounting to manufacture- where a new product which is distinct emerges. This could be liable for central excise. exemption is 150 lakhs [ whether the raw material is own or not is not relevant.

When process does not amount to manufacture then ST would be applicable unless one is working under Not.214/86 - where the principal takes the onus of discharging the duty if any.

In WCT the ST would be chargable on the service component- actuals or 40, 60,70 percent as per the type of transaction

[LAXMIKANT ARORA]

Dear sir 

In the case discussed above please tell the service tax rate and WCT rates in fabrication services to exporter in both the cases.

I also request you to state the relevant notification and section of the acts applicable.

 

In anticipation for your reply.