REGISTRATION IN SERVICE TAX

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2011 Dear Sir,
One of My client dealing in Job work in Noida. can required registration in service tax or not? if not please advice me he is liable to charge any tax or not his yearly turnover in more than 20Lac.

Thanks & Regards

Rakesh Kumar Thakur
9350744170

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)

18 July 2011 Please clarify the nature of job work. Because, in this case, he will be required to charge Works Contract Tax as well as Service Tax. If the gross receipts exceed Rs. 9 Lakh he needs to get registered.

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2011 He is Provide Job work in Garment Company. Company Provide all material related to production. he is only provide his employee.

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2011 HI SIR I AM WAITING OF REPLAY

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

20 July 2025 Thanks for the details! Here's the situation based on your info:

Your client is doing job work for a garment company where the company supplies all materials, and your client only provides labor (employees).
Under Service Tax rules (pre-GST):

Job work is considered a taxable service under “Manufacturing of Goods” service or “Works Contract” depending on the nature.
Since your client’s annual turnover exceeds Rs. 20 lakh, he is required to register for Service Tax if gross receipts from taxable services exceed Rs. 9 lakh.
In this case, since your client only provides manpower (job work) and does not supply materials, he is liable to charge Service Tax on the job work charges to the garment company.
He should register for Service Tax, collect tax on his service charges, and remit it to the government.
Summary:

Yes, your client needs Service Tax registration since turnover > 9 lakh and service provided is taxable job work.
He should charge Service Tax on his invoices to the garment company.

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