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Registration under excise department

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Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2012 Sir,

I am doing jobwork at my home but i am not register under Excise or Sale tax department.

I just want to know that registration is compulsory or not & if i am not register & continue what will be happen.

Please tell me effect,

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)

04 March 2012 Dear Anonymous

It depends upon the nature of job work done by you. if it involved supply/use of material from your end then registration for VAT is required.

Further job work is a taxable service under service tax act, so liability for service tax arises when t/o exceeds to Rs 10 Lacs.

Note:
1. Turnover does not include material supplied by the J/W.
2. Declaration to Service Tax Dep't require when t/o exceeds to Rs 9 Lacs.

Hope this information is useful & suggest not to evade the tax liability as sooner or later it get disclosed which result not only in pymt of tax but also fine and interest.

Regards

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