Service Tax on Job work, Service Tax

[AMIT JAIN, Advocate]

Sir if the contract is not written when how can i compute service tax. actually my client is a book binder. he is bind the book of our client on the pre order basis and payment receive monthly, there is no contract in written formate.

Posts / Replies

[Seetharaman K C]

There is no hard and fast requirement that a contract has to be written. You can still compute service tax on the amounts received monthly and disburse the same after checking whether your client has crossed the threshold limit etc. 

[Pradeep Khatri]

Yes, the threshold limit will play a vital role in determination of the liability of service tax.