Conversion charges
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 September 2012
Hi sir,
my client is having income from conversion charges(conversion charges-just making into packing materials (all milk,tera packs,etc provided by customers(debtors) we are just convert into packets by use of our machinery is service tax applicable for this please provide solution as soon as possible
my client is having income from conversion charges(conversion charges-just making into packing materials (all milk,tera packs,etc provided by customers(debtors) we are just convert into packets by use of our machinery is service tax applicable for this please provide solution as soon as possible
RENGARAJ R.K
(Expert)
07 September 2012
Conversion charges are taxable. But it seems you are doing some jobwork for some parties. Please ask the parties whether they are paying any excise duty for their products. If yes, there is no service tax for you.
If no, according to service tax rules, you will have to pay service tax when your income crosses 10 lacs in a year. You have to apply RC when the conversion charges claimed by you crosses 9 lacs.
If no, according to service tax rules, you will have to pay service tax when your income crosses 10 lacs in a year. You have to apply RC when the conversion charges claimed by you crosses 9 lacs.
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