Service tax from Branch to HO

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Sachin Kataria (Querist)

22 May 2009 Hi friends,

please help me in solving out a query,
Our main office is in Noida manufacturing undergarments.
Our relative have an office in Delhi which is doing Job work for us.
Is he liable to charge service tax from us u/s 65 of Service Tax act.
However all the expenses for that premises are paid from us. and it is also possible to make that firm as a branch of our company, because service tax wont be applicable in that case. Am i Correct?

Please clarify me if i am wrong and give me best suitable option. i will provide you more details if you required.

Thanks & Regards
CA. Sachin Kataria

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

25 May 2009 The processing or production of goods not amounting tomanufacture is liable to service tax. What is the type of activity?
Further processes in realtion to textile processing are exempt under Notification 14/2005.

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