service tax on works contract

This query is : Resolved

lalit (Querist)
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11 November 2010 I have received work contract of fired heater in BINA OIL REFINARY I have availed composition and paid 4.12% service tax. Service tax department given notice to deposit service tax @10.3% department view that this contract not comes in works contract. In the last year audit is already conducted. There is no objection raised.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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12 November 2010 The detaisl of the contract, whether paying VAT as a worsk contractor, method of billing may alll be relevant to prove your stand.
As long as materials also used and billed together the demand of 10.3% is invalid and maybe just a measure of creating a value for nuisance.

NITIN SHARMA

NITIN SHARMA (Expert)
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14 November 2010 Please provide the copy of agreement of that contract,copy of tender if it shows the nature of work contract you can same take in your defance.

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