06 October 2012
Dear All , I have 1 question on the Negative List of Services. Can anyone tell me ? Case :- One of my client is supplier of NEON TUBES & also fitting of the same. He has opted Composition Scheme under M Vat. Can u tell me is he liabile to pay service tax from 1st July 2012.
07 October 2012
If the fitting charge are negligible and sale is the dominant activity then ST not payable. However considering that you have opted for composition it appears to be a WC.
If so you would have to pay ST on 70% of the value as per Valuation Rule.
Advisable not tobe under compostion - to be under regular shceme and pay VAT on transfer of property [ after availing the set off -ITC]and ST on the service part.[ after availing the credit of ED on capital goods and input services if any.
CAclubindia
