Rate of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2013 Hello ,
one of my Client is providing services like refractory lining works fine bricks lining in kiln . chimneys , boilers , coolers, cyclones in cement factories , sponze iron units and steel factories etc.

They are collecting service tax under hedding "Erection,Commissioning and installation service" @12.36%

Now My Query is

1) Is it Correct rate of Service Tax ?
2) Any abatement will be available to
them under hedding Man Power Supply..!

Please Answer this as early as possible.

Thanks in advance.

CA. Narottam Kumar Rawat

CA. Narottam Kumar Rawat (Expert)
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09 November 2013 Hi,

In case your client also using material during such erection, commissioning and installation then these services will fall under Works Contract Services.

Taxable Value of service will be:

40% in case of New Works,
60% in case of repair & maintenance of Immovable Property.
70% in case of repair & maintenance of Movable Property.

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