Service tax on scrap sale

This query is : Resolved

SOHIL (Querist)
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19 January 2016 Dear Experts,
As we are engaged in service industries and registered in service tax not in excise.... we provides Erection,installation and commissioning charges ,Work contract services and other business support services.
We have purchased capital goods like cranes and other machines and availed the cenvat credit, we are also availing the service tax credit and cenvat credit on consumable parts and other spares purchase during the project. and adjusting the same against the service tax payable.

My query is when we sold the scrap material generated during the project should we charge the excise duty on scrap sales (trade value) even we are not register in excise.? If yes, where can we adjust the same? either against service tax credit or we have to pay by cash.? in Service tax return (ST-3) where this transaction will be shown ?
and under which category ?

Please explain,
Thanks

Sohil Patel

Please advice
Thanks

Sohil Patel

We have purchased capital goods like cranes and other machines and availed the cenvat credit.

Guest

Guest (Expert)

20 January 2016 A service provider will not purchase material. He usually renders only service. In that case how does scrap gets generated ? If for example, you do service in my factory and the scrap is generated in that process, doesnt the scrap belong to me? Clarify me this. I will let you know the taxability