Free supply of materials

This query is : Resolved

rajender guptha (Querist)
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01 July 2014 IS SERVICE TAX PAYABLE BY SERVICE PROVIDER ON FREE SUPPLY OF MATERIALS BY SERVICE RECIPIENT ?

IF SO PLEASE PROVIDE NOTES FOR THE SAME.
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THANK YOU.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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01 July 2014 No service tax on supply of material. Service tax is payable only on supply of service.

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rajender guptha

rajender guptha (Querist)
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01 July 2014 thank you,

can you please elaborate on service tax payable on supply of service.

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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01 July 2014 If you provide service to other then you have to pay service tax.

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Rupesh Jain

Rupesh Jain (Expert)
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01 July 2014 if he proved the service then service tax applicable no on the material supply.

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rajender guptha

rajender guptha (Querist)
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01 July 2014 as per my understanding if contractor is recovering the cost of materials for the free supply of materials,

then he is not liable for sevice tax payment.

please tell me whether i am correct or not