We are provider of crane services in India. We are paying services tax under “Supply of Tangible good” category. One of our input service provider (Pvt. Ltd. Co)is providing us service of “Machining” wherein he reshape some of our parts of cranes as per company requirement (All raw material is provided by us). Input service provider has gross turnover of 45 Lacs but does not registered under service tax & therefore he is not charging any service tax amount in his bill. We are not taking any CENVAT credit for the same.
Query: 1. Shall we insist him to have ST registration number? Are we responsible for his act of not registering service tax?
11 September 2012
Now, w.e.f. 01.07.2012 the classification has changed. It is now a service which is not in negative list.
You are not at all responsible for the act of your job workers not registering himself under service tax. You should also not insist for his service tax registration number.