Whether Embroidery work done under JOB WORK, exempted from Service Tax in the Year 2014-15?

A B Kundu (Professional) (1422 Points)

12 October 2019  

A person was carrying on embroidery work on the garments on job work basis under sole-proprietorship and for which no Service Tax Registration was taken as he was under the impression that JOB WORK CHARGES are exempted from Service Tax. 

Now, he received a notice from the department for the year 2014-15 where the department has referred the turnover declared & TDS claimed U/s 194C in the ITR and 26AS of that year and demanded the Service Tax @ 12.36% on the said turnover. 

The query is, whether the Job Work Charges was exempted in the year 2014-15? If yes, then can you refer the Notification No. with date or any other reference, so that the same can be intimated to the department?

 

Thanks