Apllicability of Service Tax

This query is : Resolved

Gaurav Jain (Querist)
Follow

25 May 2009 A company is engaged in the business of Metalising (zinc coating mainly of auto parts). the work is done on job work basis. they raise a consolidated bill for the Material and their service Cost. the firm is also registered in the Sales tax and paying sales tax @ 1 % on the sales turnover. the total turnover of the Company is About 25-30 lacs.

Is service tax applicable on this kind of work?

If yes under with service and what will be the rate of service tax?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

25 May 2009 Liable under BAS - production / proicessing of goods not amounting to manufacture.
On the labour charges part there is a liability.
Options: Avail cenvat credit on raw materials and pay ST on full amount. [ may not be feasable since volume low and excise documents may notbe available]
Avail deduction for materials cost under Not.12/2003 [doumentary proof for same could be an issue]
A possible legal argument couldbe that this is works contract and in WC the entry does not exist. [ to use this argument there shouldbe some case law precedence. which presently is not there]

Message likes : 1 times

Gaurav Jain

Gaurav Jain (Querist)
Follow

26 May 2009 thanks for the reply.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Lalan Kumar Jha

Vidit Ratanghayra

Suneel Shah

Ravikumar

Ritesh Panpaliya

Subscribe Now

Apllicability of Service Tax

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

Accountant

GST CONSULTANCY

Manager- Finance and Compliance

CA Final

GST CONSULTANT