27 February 2009
A Foriegn Company executing a construction of rubber dam in amdhra pradesh which is awareded by Greater Hyderabad municipal corporation amounting to Rs. 8.00 crors the 8 cr includes various components like 1. Material Part . 2.design and development. Engineering works etc but breakup is not given in the agreement. hence whether this foriegn company is liable to pay service tax or not in india.
01 March 2009
Yes service tax is payable on composite contract value @4% and no credit of input and input services is available or @12% with full input/input services credit.
credit of capital goods cenvat is avalable in both the conditions.