Service tax

Kaushik Nandy (Querist) 10 April 2014 This query is : Resolved
One of my neighbour is doing gold tonching(trade name) business which is testing of gold ornament sample to assertain karat scale by using computerized heavy machine ( machine price 12 lacs ) and his turnover is approx. 15 lakhs per annum, although as per pratice gold jewellery is considered under micro and small scale industry but this business should come under inspection and testing service simce computerized testing report comes out.....but the his business is not registered under service tax cat.how it is possiable????

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R.V.RAO (Expert) 11 April 2014
A new service tax regime has been introduced with the announcement of budget 2012 wherein all services will be taxed unless they are specified under the negative list entry or are otherwise exempted. Under the new system, the services will be taxed comprehensively, except the few ones which have been specified under the negative list. The Central Board of Excise and Customs [CBEC] has further issued "Mega Exemption Notification" vide Notification No. 25/2012-Service Tax dated 20th June, 2012, enlisting the services which shall be exempt from the payment of service tax with effect from 1st July, 2012.
so go through the negative list .if the negative list is silent about the service referred by you, ,then the service mentioned in your query is taxable.

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C. SANJEEVA RAO (Expert) 14 April 2014
The nature of service comes under inspection and testing service is attracts service tax, exceeds the threshold limit of Rs.10,00,000/-