Job work related service tax

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..... Job work related service tax
Query (Issue) Started By: - jyoti kan Dated:- 22-12-2012 Last Reply Date:- 25-12-2012 Service Tax
Got 3 Replies
Service Tax
Dear sir/ ma'am, i want to ask a query that a job worker whose work is not amounting to manufacturer then he is exempt form service tax if principal manufacturer is paying appropriate rate of duty. And appropriate rate of duty mean .....

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..... s - "duty payable on manufacturer or production under central or state Act, but shall not include Nil rate of duty or duty wholly exempt." My Query is that if the turnover of manufacturer is less than 150 lacks and he is not paying any duty then job worker would liable to pay service tax ??? if there is proviso or explanation is given in this matter, please guide me. Thanking you... Reply By NE .....

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..... ERAJ KUMAR, RANCHI: The Reply: Surely not if the duty is exempted by way of threshold exemption, no service tax is liable. The goods still amounting to manufacture and excisable however not attracting duty by virtue of threshold exemption. Reply By JAMES PG: The Reply: ST liability has to be discharged by the job worker if his turnover is above Rs 10 lacs irrespective of the fact that manufactu .....

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..... rer is enjoying SSI exemption of Rs 150 lakhs Reply By CA Seetharaman K C: The Reply: If the work does not amount to manufacture then it would be catrgorised as a service and service tax would be payable once the job worker crosses the threshold limit of 10 lakhs. Registration needs to be applied for when he crosses 9 lakhs
Discussion Forum - Knowledge Sharing .....

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