CA Ashok Kumar Sahu (Partner) (3637 Points)
26 November 2009Dear Members,
we are a construction firm, provide following service to our client :
1. Hiring of Equipment for Removal of over burden in loose soil up to 15 mtr. depth.
2.Hiring of Equipment for Removal of over burden in Hard soil up to 15 mtr. depth.
my question is above services is cover in "mining service." service tax dept. had issued a demand notice for this regards.
Thanking you
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 30 November 2009
Yes it appears to be liable. See if you can avail the central excise credits available on procurement of the material handling equipments in the past years to set off against this liability.
Second if the hire of machinery and provision of people are different contracts then to that extent of value it can be said to be liable for VAT.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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