Regarding service tax query

This query is : Resolved 

23 February 2014

sir,

MY CLIENT IS DOING THE JOB WORK OF READYMADE GARMENTS AND HIS TURN OVER IS APRROX 20 LACS
PLEASE ADVICE ME IT IS COME UNDER SERVICE TAX OR WHAT

23 February 2014 not if you are covered under S. No. 30 (c) of notification no. 25/2012-ST dated June 20, 2012 that exempts ‘carrying out any intermediate production process as job-work in relation to any goods on which appropriate duty is payable by the principal manufacturer’. S. No. 30 also covers certain other activities of job-work.

if not covered in above, then your client could be liable for service tax.

23 February 2014 Though reverse charge applies in case of works contract, reverse charge mechanism is only a mode of collection of service tax. That provision is not a levy of service tax. Thus, if an activity is not leviable to service tax, no service tax would be payable simply because that activity is covered under definition of works contract
.
.
Textile processing is not subject to service tax and hence service tax should not apply.
.
.
In case u are doing stitching of cloth?

Your job workers will not be liable. Even your activity will not be subject to service tax, since stitching cloth is ‘manufacture’ and hence outside the service tax net.

24 February 2014 Simply you have to check whether your job work amounts to manufacture or not, if it manufacture then no service tax, otherwise applicable.


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