Service tax (Service Tax)

This query is : Open

PANKAJ KAPOOR

( Author )
14 July 2012

THE DEALER HAVING ENGINEERING WORKSHOP IN MIDC AND ALSO HAVING EXCISE NO . HE IS ISSUING LABOUR CHARGES BILLS AND COLLECTING SERVICE TAX SEPERATELY IN THE BILLS HE IS ALSO PAYING SERVICE TAX ON CERTAIN EXPENSES TO OTHER PARTIES SUCH AS TESTING WORK SECURITY CHARGES AND THEY ARE ASLO CHARGING SERVICE TAX IN THIER BILLS ASLO.

THE DEALER CAN GET THE FULL DEDUCTION OF SERVICE TAX PAID BY HIM ON SUCH EXPENSES INCURRED AGAINST HIS COLLECTION OF SERVICE TAX
PLEASE EXPLAIN

saurav

( Expert )
15 July 2012

Dear pankaj

It seems the dealer is job worker, in such case, service tax will be exempt w.e.f. 01-07-2012 ;

As per 'List of exempted services' -

30. Carrying out an intermediate production process as job work in relation to:

(c) any goods on which appropriate duty is payable by principal manufacturer.

As a result service provided by sub contractor are also exempt

29. (h) Sub contractor providing services by way of works contract to another contractor providing works contract service which are exempt.

I hope this will help you.

Regards,