Please Help: Applicability of Service tax on Installation of Transformer/sub station undertaken by contractor of utility provider.
Posted Date : 18-Dec-2012 , 05:02:35 pm | Posted By CA. Vipin Saini
Dear All,
If we go through Circular No. 123/5/2010-TRU dated 24.05.2010. Then it has found that the activity of laying of electrical cables undertaken by utility provider (including his contractors and agents) is out of ambit of service tax. But The Board has clarified that installation of transformer/sub-station undertaken independently i.e. not by the utility provider but by the consumer/end user or his contractors or agents are also subject to Service Tax.
Here point of confusion is that as activity of laying of electrical cables is exmepted, whether installation of transfer/sub-station undertaken by contractor/agent of utility prover will be covered exempt or not?
If anybody know any case law on above matter, please share.
If we go through Circular No. 123/5/2010-TRU dated 24.05.2010. Then it has found that the activity of laying of electrical cables undertaken by utility provider (including his contractors and agents) is out of ambit of service tax. But The Board has clarified that installation of transformer/sub-station undertaken independently i.e. not by the utility provider but by the consumer/end user or his contractors or agents are also subject to Service Tax.
Here point of confusion is that as activity of laying of electrical cables is exmepted, whether installation of transfer/sub-station undertaken by contractor/agent of utility prover will be covered exempt or not?
If anybody know any case law on above matter, please share.
Category : Service Tax | Answers : 2 | Comments : 2 | Hits : 730
Answers
Answer By:
As per my understanding of the subject I think that installation of transformer/sub-station undertaken by contractor/agent of utility provider WILL NOT attract service tax as the work is not undertaken on an independent basis.
Answer By: CA Priyank Singhi
As per my understanding of the subject I think that installation of transformer/sub-station undertaken by contractor/agent of utility provider WILL NOT attract service tax as the work is not undertaken on an independent basis.
Comments
CA. Vipin Saini
24-Dec-2012 , 06:57:16 pmThanks for Sharing Your views. My views are also same but I could not found any Case Law on this matter. So Please If anybody know about any case law on this matter, Please Share.
CA Priyank Singhi
27-Dec-2012 , 10:37:14 amI dont think we have had a case on it yet.