Works contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2012 Dear Expert,

Following are the facts of the case. Please provide your opinion -

1) My client has been offered a works contract for installation of elevators.

2) These elevators are imported by the principal (builder)and provided to my client for installation.

3) My client wants to discharge the Service Tax liability under Rule 2A of the Determination of Value Rules, by taking 40% abatement.

My query is whether the value of the elevator can be added to the value of the Works Contract for discharging the liability under the mentioned Rule. The Explanation to the Rule states "Gross Amount charged" shall include the fair market value of goods supplied under a contract for consideration or otherwise.

Thanks.