Services in relation to trading business

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ajithkumar p.c (Querist)
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07 June 2012 Dear Sir,

1.A dealer who trades in Cements and Iron & Steels collect labour charges for loading & unloading and cutting charges for cutting the iron bars in required length. Is this services will attract service taxes which alone have a turnover of Rs10 lakhs above, in addition to trading turnover. These items shown separately in the bill.

2. In addition to above , the trader have lorries which delivers these items in the customers cite, whether it constitute GTA service or attract tax in any other heads , in the light of new service tax regime( Negative lists - Trading)

I expect my query will resolved by a learned expert.

Thank You.

RASHMIKANT

RASHMIKANT (Querist)
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07 June 2012 I HAVE PRIVATE LIMITED COMPANY WHO IS RECEIVING LABOUR INCOME FROM A JEWELLERY SHOWROOM WHO IS ALSO A PRIVATE LIMITED COMPANY AFTER TDS BEING DEDUCTED FROM THE ABOVE. WHETHER I AS A PRIVATE LIMITED COMPANY LIABLE TO PAY SERVICE TAX ON THE LABOUR INCOME RECEIVED AFTER IMPLEMENTATION OF NAGATIVE LIST IN SERVICE TAX ........

PLEASE REPLY AS EARLY AS POSSIBLE.....

PUNEET GOYAL

PUNEET GOYAL (Expert)
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10 June 2012 As far as labour charges are concerned, it is informed that in case of job work service tax is payable only any process does not amount to manufacture or production of goods. However in case of Carrying out an intermediate production process as job work in relation to cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act ,1985 (5 of 1986), service tax is exempted by exemption NN 12/2012.

In case of GTA service by road, provider of such services is required to pay service tax only if consignor and consignee who is making the payment is not from organized sector.