Liability ro pay Service Tax on Jobwork
This query is : Resolved
13 July 2011
Our company "M/s. XYZ Pvt. Ltd. - Silvass" has manufacturing unit @ silvassa, we are POY manufacturers. We have started other unit in Gujarat "M/s. XYZ Pvt. Ltd. - Surat"from where our manufactured products are being sold. Now our company is considering to buy the raw materials(Poly chips) by unit in Gujarat and issue the same materials to our manufacturing unit ""M/s. XYZ Pvt. Ltd. - Silvass" for the manufacturing of POY. Is this considered as Job Work or not? If yes, what will be the Servce Tax Liability?
13 July 2011
Hi,
I dont think procurement of any Raw Material may be considered as Job Work. In General terms Job work implies some goods have been given to Contractor for doing some work. If any Manufaturer are selling his own manufactured/jobworked material, it cannot be treated as Job Work in the Hands of purchaser.
There is one more Blanket Concept that no one can sell to itself. Service of one Unit to another Unit of the same Company cannot be treated as Taxable Service.
I dont think procurement of any Raw Material may be considered as Job Work. In General terms Job work implies some goods have been given to Contractor for doing some work. If any Manufaturer are selling his own manufactured/jobworked material, it cannot be treated as Job Work in the Hands of purchaser.
There is one more Blanket Concept that no one can sell to itself. Service of one Unit to another Unit of the same Company cannot be treated as Taxable Service.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- Specified Profession
- GST ON DAMAGED GOODS
- Taxation on LTCG for property sold after 24JUL2024
- Last year TDS Claim
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Free lancer income
- Long Term Service award taxability in hands of company
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
