SERVICE TAX
BAL KRISHAN GARG
(Querist) 01 October 2009
This query is : Resolved
Dear ALL,
A is my client and doing Jobs of Powder Coated Paints on Geysers / fan blades on the material related to B in the premises of B alongwith his labour.Billing is made on piece rate basis on OK piece on monthly basis i.e. Rs.1.75 per piece for OK piece .
Whether A is come under the provisions of Service Tax under Manpower Recruitment Service for labour supply ?
I believe that it is a job work case and come under Business Auxiliary Services .
Further B is either used those painted goods in his final product or sold otherwise only after payment of Duty .
Whether Notification 8/2005 is apply here.
if yes , how A can be brought under the provision of Ser.Tax ?
Bill is printed as " JOB WORK ONLY "
THANKS TO ALL ,
BAL KRISHAN GARG
my e-mail id : gargbk2001@yahoo.com
tarun goyal
(Expert) 08 October 2009
dear, job work is covered under the provisions of service tax i.e under the category of Business Auxiliary Service only when the process undertaken by him does not amount to manufacture. now, in your case your client is clearing the goods from the premises after payment of duty then it is not covered under service tax. further, if the goods are consumed in the final goods, then also this will be covered under Excise Act and not service tax. if the goods are further sold and then consumed in final goods and no Central excise duty is paid, then it is liable for service tax subject to the SSI provisions. for further clarifications contact tkg1968@rediffamil.com
