Service tax on repair to machinery
This query is : Resolved
24 December 2012
DEAR SIR
WE ARE PVT LTD MFG.CO, REGISTERED IN EXCISE & SERVICE TAX, WE GET REPAIRED OUR MACHINE & MACHINE PARTS FROM OUT SIDE OUR CO. FORM DIFFERENT PARTIES. THE PARTIES WHO HAVE DONE WORKED FOR US IS NOT REGISTERD IN SERVICE TAX. THERE BUISNESS IS ALSO ABOVE RS 10,000,00/- PER YEAR & THEY ARE NOT CHARGING SERVICE TAX ON THEIR BILLING. NOW I WANT TO KNOW IS THEIR OUR LIABILITY TO DEPOSIT SERVICE TAX ON BEHLAF OF THEM IF YES THAN PLEASE TELL ME RATE & NOTIFICATION NO.
WE ARE PVT LTD MFG.CO, REGISTERED IN EXCISE & SERVICE TAX, WE GET REPAIRED OUR MACHINE & MACHINE PARTS FROM OUT SIDE OUR CO. FORM DIFFERENT PARTIES. THE PARTIES WHO HAVE DONE WORKED FOR US IS NOT REGISTERD IN SERVICE TAX. THERE BUISNESS IS ALSO ABOVE RS 10,000,00/- PER YEAR & THEY ARE NOT CHARGING SERVICE TAX ON THEIR BILLING. NOW I WANT TO KNOW IS THEIR OUR LIABILITY TO DEPOSIT SERVICE TAX ON BEHLAF OF THEM IF YES THAN PLEASE TELL ME RATE & NOTIFICATION NO.
25 December 2012
As per Section 65B (54) your case would fall under works contract if following conditions would satisfy:
1. This is a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and;
2. such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any moveable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property;
If your case satisfied aforesaid conditions and service provider is either any individual or Hindu Undivided Family or partnership firm, whether registered or not, including association of persons then only you are required to pay 50% service tax as per serial no.9 of Notification No. 30/2012-st.
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1. This is a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and;
2. such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any moveable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property;
If your case satisfied aforesaid conditions and service provider is either any individual or Hindu Undivided Family or partnership firm, whether registered or not, including association of persons then only you are required to pay 50% service tax as per serial no.9 of Notification No. 30/2012-st.
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26 December 2012
THANKS SIR
I WANT TO KNOW ONE THING CAN I TAKE CENVATE OF SERVICE TAX WHICH I HAVE DEPOSTIED AG. REPAIR TO MACHINERY AS PER YOUR REPLY
I WANT TO KNOW ONE THING CAN I TAKE CENVATE OF SERVICE TAX WHICH I HAVE DEPOSTIED AG. REPAIR TO MACHINERY AS PER YOUR REPLY
27 December 2012
Yes Vipin you can take the Credit on the basis of GAR-7 Challan provided it satisfy the definition of input service as per rule 2(l) of CCR,2004.
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