Issue of foc material
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 November 2011
YSR limited engages L and T for erection and commissioning of its machinery.
It issues Machinery to contractor on FOC basis for using in the erection and commissioning.
will value of FOC material be included in assesable for charging service tax ?
regards,
It issues Machinery to contractor on FOC basis for using in the erection and commissioning.
will value of FOC material be included in assesable for charging service tax ?
regards,
10 November 2011
Abatement is available under Notification No. 1/2006 dt. 01.03.06 for erection & commissioning if FOC value is also included in gross amount for the purpose for calculating taxable value. So if you are taking abatement then it has to be included. And if not, then only labour charges will be charged to service tax.
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 November 2011
Not really satisfied. any case laws to support the answer.
19 November 2011
Answer of the above query depends on whether L&T opted for composition scheme or not. If opted for composition and service falls under works contracts services then value of all goods or cost will be included while applying concessional rate of service tax (i.e. 4.12 %). In this case value of all the material of goods will be added whether provided by the client free of cost or purchased by L & T on its own. For more detail read Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007.
If u r satisfied by my reply then say thanks by clicking on "THANK USER".
If u r satisfied by my reply then say thanks by clicking on "THANK USER".
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
Trending Online Classes
CAclubindia
