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View on filling and packing job

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..... My client is a job worker doing filling and packing job and paying excise duty on selling price of the brand owner, from the beginning. Job work contract comprises of charges schedule which amongst other, mentions of fixed monthly charges termed as “warehouse rental charges.” Because of this term, the dept. is asking to pay service tax under Storage Warehousing services on that rental amount. Th .....

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..... is is the part of the total payment schedule and we are not providing any services to the brand owner. What we are doing is the manufacturing and paying appropriate duty. Is the department’s stand correct? - Reply By CA Anurag Bansal - The Reply = As you mentioned in your query that your contract comprises warehouse rental charges, it is covered under proposed service "Renting of Immovable Proper .....

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..... ty". So Service Tax shall be levied. So You may change the conditioned of contract. - Reply By Madhukar N Hiregange - The Reply = whwere the value is included in the value of goods on whcih ED is paid then there cannot be servcie tax. You may also examine the billing to make it compatable to the actual transaction to avoid disputes. - Reply By Surender Gupta - The Reply = On the basis of detailed .....

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..... examination only it can be revealed that the rental charges for warehousing is falling under the old category of "Storage & Warehousing Services" or under the new category of "renting of immovable property". - View on filling and packing job - Query Started By: - Jayant Kuvelkar Dated:- 8-3-2007 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an ex .....

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..... pert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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