Job Work -Service Tax, Service Tax

[DEEPAK SHARMA]

One is manufacturing Readymade Garments (Later RMG) on belaf of his clients

* Fabrics is raw material of his clients

* His Clients provide him fabrics and also designs and sizes (which types of RMG to be made)

* He is manufacturing RMG and return to their clients on job work basis.

Is Service Tax Applicable on them?

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

In my opinion the process undertaken by you amounts to manufacture under Section 2 (f) of Central Excise Act, 1944. Therefore you need not pay service tax.

[ganeshan kalyani]

The process amounts to manufacture and therefore service is not applicable.

[Krishan Gopal]

There is no liability of service tax as per notification no. 08/ 2005 Service tax.

Gopal