Service tax query

Sreejith Nair (Manager) (63 Points)

21 March 2014  

Sir,

I am working in a manufacturing company (Partnership firm) in Kerala. We are in production of agricultural item. As per the VAT rule we are exempted because of the reason of agriculture product. Now my query is that do we need to file for service tax as our tax consultant said that we need to register for Service Tax as we have paid a lot of Labour charges and transportation. 

His explanation was that we need to pay tax of labour charges, carriage inwards, carriage outward and also on transportation. 

My Query is that tax of labour charges are paid on certain nature mentioned in the labour charges. We are a manufacturing unit and we are not in manpower supply or any service tax related to it. Labour charges that our company has shown is for the expenses made for machine mould maintenance and certain expenses related to it. Regarding transportation we are using private transport and not any agencies and the charges are completely borne by us. Should we need to pay service tax. Our company is not having turnover of more than 25 lacs. Kindly help and give me the advice and suggestion as required to be followed and the rules and act pertaining to it.