Service tax applicability - category - abatement claim

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..... A service provider gets contract for installation of pipeline for drinking water sewage water line in a industrial township.The work will include the foll:- a)Earth excavation work for trenches backfiliing, b)lowering ,laying of pipelines , c)filling the trenches with sand other materials after layinf of pipelines, d)installation of air valves , socket etc at both ends and, e)hydrolic testin .....

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..... g of finished pipeline etc. The pipeline itself will be supplied by the company.But cost of misc. materials like sand ,kapchi etc will be borne by the service provider. Query:-1)Under which category stax will be chargeable? ----(I)Errection,installation commissioning ? ----(II)Works Contract? 2)Whether abatement of 33% can be claimed under (I) (ii) above ? 3)Whether stax will be payable @ 67% o .....

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..... n invoice amt. of service provider (including value of pipeline supplied by company) or invoice amount excluding value of pipeline?This is ,I think required as per Valuation of services rules,2006 . or Whether stax has to be paid @67% on invoice value only? - Reply By Markesh Antony - The Reply = Though the detailed analysis of contract may lead to different conclusion, I am of the primarily vie .....

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..... w that the service described in the query is falling within the purview of "Works Contract" category. For this purpose, you have two options either to avail composition scheme of 4% servie tax on whole value of the contact including the value of free supply of material or to pay service tax at full rate after deducting value of material from the total value of contract. The benefit of exemption of .....

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..... 67% is not available in this case. - Service tax applicability - category - abatement claim - Query Started By: - sunil mehta Dated:- 22-7-2009 Service Tax - Got 1 Reply - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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