service tax on supply and fixing of precast RCC Louvers and Fins, Service Tax

[sunil mehta]

A small service provider gets work order from a Ltd. Company  for manufacture & supply and fixing of Precast RCC Louvers and Fins in the factory premises of the concern.

1)The service provider will have to manufacture of above 2 products in service provider"s premises premises and then supply these products to Ltd Company as per terms in work order.

2)Then service provider will have to do all plastering / providing re-inforcement between louvers & fins/jointing etc. with his own labour and materials (cement etc) at the factory premises of the Company.

The service provider will be paid separate  price for "manufacture & supply " and separate price for "fixing" of above 2 products.As per work order State Vat and service tax will be paid extra ,if apllicable.

In above case two activities are involved viz.manufacture/supply " & "fixing" .

NoteThe selliung price of above 2 products of the service provider is less than Rs.1.5 crores during the financial year.His non-excisabele turnover is Rs.NIL.

Query:-1)whether  excise duty will be applicable ?

2)In my opinion service tax will be payable under "commercial or industrial construction  services on "fixing" part. Since that "fixing" labour part involves use of cement/plaster of service provider whether he can take abatement @67% or he should charge service tax @10.3% on full portion of "fixing " charges?

3)What would be the situation if the service provider manufactures "precast RCC Louvers and Fins " in the premises of that Company?Whether excise duty is applicable ?

4)Can i get Central Excise tariff code for "Precast RCC Louvers & Fins "

Posts / Replies

[Suresh Kumar Agareal]

Answers to your querries are as under:-

Qerry No.1:- Since turn over of all excisable goods is less than 1.5 crores, no excisse duty is payble

Qerry No.2:- In my openion fixing work does not fall within the mischief of "Industral & Commercial Construction Service" as such no sservice tax is payble.

Qerry No.3:-Reply to tis querry is covered under reply to querry No.2

Qerry No.4:- Central Excise Tariff code is Chapter 68 of CETA 1985

S.K.Agarwal