Our Customer CESC Ltd want to charge Service tax on their bill regading cable laying by HDD method.. but financial yaer 2012-13,2013-14 we don't charge any service tax on those bill... now they told us to charge service tax.. is there any provision or circulation regarding service tax on cable or HDPE pipe laying..
19 May 2014
Post negative list era, there are no exemptions on service tax on laying of cables. Further there is no abatement also unless it is a works contract.
Hence the activity is taxable @ 12.36% If the total consideration crosses the limit of Rs 10 lakhs in any financial year, Service tax shall be leviable in the years therefrom.
Hence Service tax shall be leviable along with interest for delayed payments and penalties for late filing if returns might also attract.
CAclubindia
