Benefit of abatement under the category of Erection, Commissioning or Installation

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..... Sub: Service tax on works contract X received a works contract for installation of Furniture. X will provide the services including furniture, as a full of works contract. X cannot give a separate invoice for materials and installation charges, due to, he will out of the excise limit (i.e. 1 crore) and he had to pay excise duty on the materials, He will raise only works contract invoice, because, .....

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..... he will safe from excise duty and only service tax will be charged. Question: 1)As per above transaction, my interpretation is true? 2) Can X will get the benefit of abatement up to 67% under the category of Eraction, Commissioning or Installation charges? 3)What should be the suitable transaction as per your view? - Reply By Madhukar N Hiregange - The Reply = The important fact would be wherther .....

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..... he is covered under erection. In a WCT the manufacture of movable excisable goods would be liable for CED( if over 1 cr) as well as WCT. If he fall within the catgeory then the 67% exemption would be available. - Reply By Surender Gupta - The Reply = I doubt that by merely by issuance of an invoice, any tax liability is determined. The levy of any tax / duty is independent to the manner you are r .....

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..... aising invoices. From the Finance Bill, 2007 you can safely interpret that work contract was not taxable at all before that. - Benefit of abatement under the category of Erection, Commissioning or Installation - Query Started By: - Vijay Chitte Dated:- 6-3-2007 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Managem .....

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..... ent India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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