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service tax on hazardous waste disposal

dhanraj gupta (superintendent) (27 Points)

30 January 2011

kindly let me know the category of service under which service tax is leviable on hazardous waste disposal

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5 Replies

dhanraj gupta (superintendent) (27 Points)
Replied 30 January 2011

pls reply fast

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 31 January 2011

put the process in brief to discuss the applicability ,

dhanraj gupta (superintendent) (27 Points)
Replied 31 January 2011

The hazardous waste is being collected at a tank in a factory and then they give the contract to a third party to dispose and destroy it.. So in what category will the service tax will be leviable?will it be under cleaning services?

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 31 January 2011

20. CLEANING SERVICES

(A) Date of Introduction: 16.06.2005 vide Notification No.15/2005-ST, dated 07.06.2005.

(B) Definition and scope of service:

“Cleaning Activity” means cleaning, including specialised cleaning services such as disinfecting, exterminating or sterilising of objects or premises, of —

(i) commercial or industrial buildings and premises thereof; or

(ii) factory, plant or machinery, tank or reservoir of such commercial or industrial buildings and premises thereof, but does not include such services in relation to agriculture, horticulture, animal husbandry or dairying;

(Section 65(24b) of the Finance Act, 1994)

“Taxable Service” means any service provided or to be provided to any person, by any other person, in relation to cleaning activity;

(Section 65 (105) (zzzd) of the Finance Act, 1994)

(C) Rate of Tax & Accounting Code:

	Rate of Tax	Accounting Code
Service Tax	10% of the value of services	00440318
Education Cess	2% of the service tax payable	00440298
Secondary and Higher Education cess	1% of the service tax payable.	00440426
Other –Penalty / interest	As levied or applicable	00440319

(Rate of tax is effective from 24.02.2009.)

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 31 January 2011

This may not be cleaning services. Probably under BAS - production or processing of goods. However the matter was remanded in the case of Bharuch Envior Infra. 2008- 12 - str- 622 based on dept circular. There is adoubt whether the same wouldbe subjected to ST.