is liable for service tax, Service Tax

[Ramesh jangid]

Dear Sir

we are bus body fabricator/manufacture

we make new bus body on chassis supplied by bus/travels owner.

we have 2 option of amount charge

1. gross amount include material and labour

2.  only on labour basis when material suplied by bus owner

 are we liable for service tax under both circumstances.

or liable for exice

plz help 

Posts / Replies

[Pradeep Khatri]

Dear Ramesh, 

Since, you are bus body fabricator/manufacturer, therefore, you would have to pay the Central Excise Duty.  Service Tax would not be applicable as there is specific exemption in the Negative list in this regard that if any activity which comes under the purview of manufacturing then service tax would not be applicable.

Regards,

YAGAY & SUN

(Indirect Tax Consultants)