Material consumed in completion of contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2013 we are service provider , we provide services for erection of temp. structure / stall at various exhibition , (we are not exhibition organizer) to the person who participate in the exhibition

we consume material like . aluminium, sunmika ply, carpet, wood, etc & various supply of chair, as per designed approved by the customer, which cost 5 lacs to lacs per stall, at the end exhibition material become the property of the customer, whether we are eligible under 12/2003 in erstwhile period prior to 1-7-2012, and now whether we covered under works contract under 60% exemption

CA Suresh Jain

CA Suresh Jain (Expert)
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22 September 2013 Yes, you are eligible to avail 12/2003 as amended by 12/2004 prior to 01.07.2012.

The service which you are rendering comes under the works contract. The position has not changed about the valuation. Please refer to rule 2A of SERVICE TAX (DETERMINATION OF VALUE) RULES, 2006

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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