Liability of service tax on which entity ?

This query is : Resolved

rohit mishra (Querist)
Follow

17 February 2016 IF A LTD MANUFACTURING COMPANY ( REGD. WITH SERVICE TAX) SENT GOODS FOR JOB WORK TO XYZ CO.A PROPRIETERSHIP FIRM AND XYZ FURTHER SENT SUCH GOODS TO X ENTERPRISES ANOTHER PROP.FIRM.
NOW WHO IS LIABLE FOR SERVICE TAX ?

S SRINIVASAN

S SRINIVASAN (Expert)
Follow

18 February 2016 If the Process amounts to manufacture, then the principal manufacture who sends the goods to Job Worker can pay the duty and relieve the job worker from any duty liability. For this purpose procedure mentioned in circular 214/86 needs to be followed.

If the process do not amount to manufacturer it will be business auxillary service or works contract.

If it is BAS, the service tax needs to be paid by each sub contractor and the every one in the supply chain can claim cenvat on duty paid on input services.

If it is Works Contract, RCM based ST will be applicable for A Ltd. 50% of the Duty to be paid by service provider

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
Follow

18 February 2016 Fully Agree with S. Srinivasan - perfect advice.

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

MURALIKRISHNA EDDANAPUDI

Ashutosh Purohit

K.S. ANANTHARAJAN

Rasheed Mohd Abdul

Ravi

Subscribe Now

Liability of service tax on which entity ?

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANT

GST CONSULTANCY

Manager- Finance and Compliance

CA Final

Article Assistant