Service tax on profit earned on Sale of Goods in Transit, Service Tax

[Mukund Honkan]

A co.is undertaking turnkey contracts wherein supply & errection contracts are entered separately.In some instances a company is buying from vendors & directly supplying the same to project sites.Company is paying sercice tax on errection bills & excise on supplies from its manufacturing unit.Can service tax dept charge servicetax on difference in price of supplies ,given to vendor & charged to client, in pretext of co falls under works contracts Mukund M Honkan

Posts / Replies

[Pradeep Khatri]

No service tax is payable on sale of goods on profit under Transit Sale under CST Act.