25 August 2010
we make payment to work contractor on monthly basis engaged by us.we provide raw materials to the contractor and at the end he finishes the work as per contract.Whether his payments are chargeable under service tax?is there any exemtion to certain industries from paying service tax?if yes,kindly provide the list of these industries?
26 August 2010
Thank you once again. the contractor is engaged in preparing finshed goods like misti dahi,fitness curd ,lassi etc.we do provide him raw material and he finishes his job by packing finished goods At the end we do make payment @ per kg basis. his margin is included in the prescribed rate.