SERVICE TAX ON LABOUR FOR GARMENT INDUSTRIES

Save Share

This query is : Resolved

CA Himanshu Munot (Querist)

29 November 2010 Dear Sir/Madam,

One of My Client on contract basis gives tailoring labour services to a shirt manufacting company is he liable to pay service tax if his net revenue increases by Rs 10 Lacs.

Thanks in advance

Rajesh Kumar

Rajesh Kumar (Expert)

30 November 2010 Yes. ST is required to be paid under Business auxiliary service (production or processing of goods on behalf of client.)

Message likes : 1 times

Ajay Raghatate

Ajay Raghatate (Expert)

30 November 2010 Dear Rajesh sir,
Can they taken registration under MRA instead of BAS

Rajesh Kumar

Rajesh Kumar (Expert)

01 December 2010 It is manpower recruitment. It should be classified in BAS. Nevertheless, as long as they are paying ST at equal rate, the department will not object.
Nevertheless, BAS is suggested.

Message likes : 1 times

CA Himanshu Munot

CA Himanshu Munot (Querist)

06 December 2010 Thanks a lot rajesh Sir.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now