Service tax on cutting & folding contractor
This query is : Resolved
12 January 2013
My one assessee is a contractor of cutting & folding. He has gross receipts of around Rs. 11.50 lacs in FY 2012-13. So whether he is liable to pay service tax?
12 January 2013
Your query needs to be more eloborative explaining the activity mentioned of the contractor in detail.
One has to first find out whether the activity of cutting and folding amounts to manufacture. If so, the activity will fall under the excise purview and not under service tax.
Similarly if the contractor is taking a intermediary job work for an manufacturer whose final product is subject to excise, he can calim the exemption of the same as per the mega notification.
But with clarity in your query the position can be firmed up
One has to first find out whether the activity of cutting and folding amounts to manufacture. If so, the activity will fall under the excise purview and not under service tax.
Similarly if the contractor is taking a intermediary job work for an manufacturer whose final product is subject to excise, he can calim the exemption of the same as per the mega notification.
But with clarity in your query the position can be firmed up
13 January 2013
Neither the activity of contractor is subject to excise nor the manufacturer's product. The contractor's job is to get cutting & folding of traders's cloth from his (contractor's) staff of people. This cloth will be traded in the market & not for manufacturing any product.
15 January 2013
His activity in this case is liable to service tax. Earlier it would fall under business support services and now it will continue to be taxes. There is no change in the position of taxation of this activity due to the ammendment in July 12.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- When TDS on GST applied
- Requirement of tax deduction at source by individual
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
