Service tax
HARIDAS.P.R
(Querist) 26 December 2011
This query is : Resolved
we are doing job contract work of manufacturing animal feeds for another company.job contract was entered in 2005.cattle feed is a non-excisable product.are we liable to pay service tax under notification 7 /2008.are we exempted?
prabhakar singh
(Expert) 26 December 2011
When doing business you should have a consultant engaged for these advises.
R.Ramachandran
(Expert) 26 December 2011
Dear Mr. Haridas,
If the process amounts to "Manufacture", then you are not liable to pay Service Tax.
HARIDAS.P.R
(Querist) 27 December 2011
yeah ,ramachandran sir, both of your answers are really pointed and correct,i verified both.thanks.CBDT HAS ONLY ADMINISTRATIVE POWER OVER UP TO TRIBUNALS9INCOME TAX)NO EXPLICIT JUDICIAL POWERS HAVE BEEN CONFERRED UP ON THEM.IN THE MATTER OF SERVICE TAX AS PER NOT.7/08 MANUFACTUING WORK CONTRACTS DONT ATTRACT SERVICE TAX.THANKS.I WILL BE GUIDED BY YOUR OPINION HENCEFORTH.PLEASE ANSWER MY QURIES.
soumitra basu
(Expert) 30 December 2011
If you sale the goods by manufacturing only then you are not liable to service tax. but you charge service charges to your client then you shall be liable for service tax.