Easy Office
LCI Learning

Can we pay service tax on installation&commissioning charges

This query is : Resolved 

22 February 2017
We are a manufacturer of Capital Goods as well as providing service.

We are offering Installation service to our finished products in free of cost & same has been waived off in our offer/quotation, Now Excise authority is asking to pay service tax which we have waived off.

Please explain/guide

22 February 2017 No service tax payable on such free installations. You can argue such installation charge is included in the cost of capital goods and excise duty is paid on it. See the link.

https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=1068



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries




Answer Query