service tax on fabrication


08 September 2009 Service tax is payable on Erection, commissioning or installation of plant,machinery or euipments.

is service tax payable on fabrication?

The activity of fabrication is a pre-stage of erection. The item is first fabricated then its erected and installed.


08 September 2009 I guess it should on fabri also. pelase cross check i am not sure

08 September 2009 ok thnx for yr prompt reply


09 September 2009 Dear Mr Ramesh,

Meaning of Fabrication means Building of machines and structures and other equipments by cutting, shaping and assembling components made from raw materials.

If you are fabricating and selling the end product, according to me, there is no service tax.

However, if those products are erected, installed or commissioned, then on the services rendered in connection with such erection, installation and commissioning alone are chargeable to service tax, in line with Section 65 (39a.

Thanks.

Sarathy

09 September 2009 Dear Mr. Sarathy

i'm agreed with your quotes. Since I didn't find any clear guidelines on this issue so i've a little doubt that if such end product is movable then it may attract S/tax.



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