Notification no. 30/2012

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This query is : Resolved

Kunal Mittal (Querist)
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03 August 2013 ours is a partnership firm in the excise free zone of HP. We have done job work on material provided by a company to us in 12-13 and charged service tax @ 12.36% on gross amount.
Now the company says that we have charged wrong st because of the notification.
We have seen the official notification but fail to understand the official language. Can anyone make us understand the implication in our case and how we should have charged it and also what the notification means.

Guest

Guest (Expert)

04 August 2013 There is no exemption from service tax in the excise free HP zone. If your services were taxable, you are right in charging service tax.

CA Suresh Jain

CA Suresh Jain (Expert)
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04 August 2013 1. the service provided by you a job work service and not a works contract as per the definition of works contract (please visit https://hathaibaj-sureshjain.blogspot.in/ );

2. In view of the above RCM as per 30/2012 is not applicable and service tax is to be charged and paid, if chargeable, by you;

3 If the process which you are carrying on the material provided by the principals is a process of manufacture then service tax is not at all applicable in view of the Negative list u/s. 66D (f)

Kunal Mittal

Kunal Mittal (Querist)
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04 August 2013 Yes, Suresh Ji:

We are doing the job work on the materials provided by our principal and we are doing printing work for them.

They provide us raw material, we get the work done and then supply them back. So, as per you the service tax will not be charged at all?

CA Suresh Jain

CA Suresh Jain (Expert)
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04 August 2013 what is the raw material, what exactly is the process done by you and what is the resultant product ?

Kunal Mittal

Kunal Mittal (Querist)
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04 August 2013 The raw material is paper, polyester film. We print on that make soap wrapper out of that and supply them the final product as soap wrapper.