Applicability of servicetax and vat

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Tejash Patel (Querist)

25 March 2013 sir,
my client is engaged in jobwork of garment in which he do jobwork of embrodary on clothrole provided to him, he use threds as a raw material and do embrodary with use of it on computerise machine.
so my que is
is service tax liability on jobwork or vat liability on threds used in it?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

27 March 2013 Yes, as you said,service tax on the job work value and vat on the value of material consumed with profit are applicable.......mjk

Message likes : 1 times

CA Priti Surana

CA Priti Surana (Expert)

29 March 2013 There is no service tax applicability on textile processing wef 01-07-2012. So in my view no service tax is payable on jobwork mentioned in the query. Notification No 25/2012-ST, entry No. 30.

CA Priti Surana

CA Priti Surana (Expert)

29 March 2013 Yet VAT is payable on the value of materials used in such intermediate process.

Thanks

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