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Service tax on job work on machine

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..... Service tax on job work on machine
Query (Issue) Started By: - d.v. gupta Dated:- 14-5-2010 Last Reply Date:- 16-5-2010 Service Tax
Got 2 Replies
Service Tax
we are doing job work on machine.the customer come with threads and we by processing turns it into fabric. we are only using needles of machine on our behalf. threads are supplied by the customer. in consideration of this we char .....

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..... ge by the customer job charges. is service tax is applicable on us. we are only doing labour work. we are not selling any thing.so kindly let us know whether service tax should be charged or not. if charged under which chapter of service tax act. Reply By Anish Jain: The Reply: yes in my opinion it is covered under Busiess Auxiliary Services. But if the your client is paying duty on its final prod .....

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..... uct. then you need not to charge any service tax otherwise you will have to pay service tax. Reply By Brijesh Verma: The Reply: Dear Mr. Gupta, we gather from the information supplied by you that you are doing job work in relation to textile and textile articles, wherein you receive threads and such other things and thereafter as a result of a series of operations carried out by you either manual .....

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..... ly or mechanically, the same is converted into fabric. In this regard you are advised to please go through Notification No. 14/2004 dated 10.09.2004 (As amended) which provides 100% exemption to job work in relation to textile items and that too without the condition that such job work must amount to manufacture of excisable goods. So infact the condition that the principal pays duty, doesn't exi .....

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..... st under this notification and in my view you would get exemption unconditionally...
Discussion Forum - Knowledge Sharing .....

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