Service Tax on Job Work
This query is : Resolved
CA skmnair
(Querist)
04 June 2008
Parent Company issuing rawmaterials, stores and incure other expenses for manufacturing final product by its subsidiary, and the final product is not excisable, final product
come back to parent company and parent company paying processing charges to subsidiary, my question is whether its a business auxiliary service and whether service tax is applicable..... expecting reply soon....... thank u.
come back to parent company and parent company paying processing charges to subsidiary, my question is whether its a business auxiliary service and whether service tax is applicable..... expecting reply soon....... thank u.
S. SRIKANTH
(Expert)
04 June 2008
Dear Nair
I think you are correct. Since jobworks not covered by Excise are normally covered BAS (service Tax).
BAS is defined to include any production or processing of goods for and on behalf of the client which is not covered by sec 2F of Central Excise. For detailed clarification pl refer Para 19.1 Service Tax (Taxmann) SS Gupta. Best recommended book.
I think you are correct. Since jobworks not covered by Excise are normally covered BAS (service Tax).
BAS is defined to include any production or processing of goods for and on behalf of the client which is not covered by sec 2F of Central Excise. For detailed clarification pl refer Para 19.1 Service Tax (Taxmann) SS Gupta. Best recommended book.
CA skmnair
(Querist)
04 June 2008
thank u Srikanth
Vijay Chitte
(Expert)
06 June 2008
Dear Friends,
Please refer Notification No.8/2005-Service Tax, from 01-03-2005.
This notification is resolved your query.
Please refer Notification No.8/2005-Service Tax, from 01-03-2005.
This notification is resolved your query.
CA skmnair
(Querist)
07 June 2008
hi vijay
in present case the final product is not an excisable one, so its can be covered under service tax?
in present case the final product is not an excisable one, so its can be covered under service tax?
Shyam Lal Naik
(Expert)
10 June 2008
Yes. Production/procesing of goods(whether excisable/not) is covered under BAS.
CA skmnair
(Querist)
11 June 2008
Thank u Shyam
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