Eligibility of service tax to HAL, Service Tax

[Jothi Jothi]

Dear All,

We are manufacturers of rubber parts.  We doing job works to HAL. Let me know, Is HAL has any exemption in payment of service tax? If so what is the notification No.?

Secondly we also claiming from our 2 or 3 customers the development charge.  Is we have to pay service tax for this development charge? Kindly clarify.

Posts / Replies

[raj kumar shukla]

The query is not clear.Mere job work can not decide whether it is subjected to service tax or not. if the process employed by you does not result into coming into existence a new and identifiable product  which is also excisable, you may be subject to service tax.Otherwise it may be a case of central excise jobwork wherein goods are supplied on simple challans and no duty is paid as per Notification 214/86.

 if you are developing tools , you may be subject to excise duty and value of development is includible in a/vlue.