27 September 2013
Hello My client is doing job work. (stitching of garments) He receive material from manufacture and sometime purchase from market as per specification of manufacture then do stitching and other work and send them to manufacture. Sometime he also put label as per manufacture requirement. He receive his job work charges from manufacture. My queries are 1 Is there any excise duty liability on my client or excise duty liability on manufacturer. 2 Is there any service tax liability? If yes then who will collect the service tax and on what amount?
28 September 2013
since, process of making readymade garments carried out by your client is a process of manufacture/production, your client is not liable for service tax.
2. The ready made garment are exempted from payment of excise duty if CENVAT credit is not taken
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
29 September 2013
Mr. Nikhil is right. The VAT and CST is a Work Contract as per VAT laws
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
21 November 2013
hello sir thanks for reply We don't sale any material while stitching except threads, buttons etc. So how will we cover under work contract? Please explain me
CAclubindia
