Service tax for bought out items

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Dear Members,

 

We have been retained by a client ( a section 25 company) to Design and Build a commercial building in Bangalore.

May I request the members to please guide me on the following.

Do we include Service Tax for items like lift, DG sets, solar panels etc which are purchased from other vendors.

Can we ask the sub contractor to pay the ESI /PF for the labor payments and we take an exemption?

 

Thank you and regards,

 

Jagadishwaran

 

Replies (3)

Mr Jagadishwaran 

I did not understand your query.

In respect of goods used for Construction or execution of works contract of a building or a civil structure or part thereof, If you are engaged in construction business, then you can claim CENVAT credit in respect of such goods.

Mr Jagadishwaran 

I did not understand your query.

In respect of goods used for Construction or execution of works contract of a building or a civil structure or part thereof, If you are engaged in construction business, then you can claim CENVAT credit in respect of such goods.

Hello Mr. Aditya,

 

Thank you for sparing your valuable time and I am sorry my query was not clear.

What I want to ask you is that we have an assignment to Design and Build a Commercial Complex in Bangalore. Our scope includes civil construction and also supply & installation of equipment like passenger lift, Diesel Generator etc.

With regard to taxes, I know for sure that we need to include VAT and Service Tax for the construction part.

For the items which are purchased from third party vendors like lift, diesel generators etc, I am not sure if we need to add Service tax as this is just trading kind of activity and not construction per se.

Could you please advice.

regards,

 

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