service tax on winding wire manufacturer

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2011 is any service tax exemption for winding wire manufacturer

Bimal Jain

Bimal Jain (Expert)
Follow

06 June 2011 Service tax exemption available only when your activity falls with in the definition of Manufacture U/S 2(f) of the Excise Act but it looks like the said activity may not be termed as Manufacture and you may be liable to discharge service tax under BAS.

Hope Clarified.

Regards.

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2011 Thank u sir,I want to know another query i.es. is there any excise duty exemption apart from 1.5 crores

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

24 July 2025 Here's a clear explanation based on your query:

### Service Tax on Winding Wire Manufacturer

* **Service tax exemption** applies **only if your activity qualifies as "manufacture" under Section 2(f) of the Central Excise Act, 1944.**
* If winding wire production **does NOT qualify as manufacture** under this definition, then service tax **may be applicable on certain services provided by you** (such as Business Auxiliary Services - BAS).
* So, if your winding wire production is considered manufacturing under Excise law, then **service tax is NOT applicable on the manufacturing activity itself.**
* But if you provide ancillary taxable services (like repair, maintenance, consultancy, etc.), service tax applies on those services.

---

### Excise Duty Exemption

* There is an **excise duty exemption for manufacturers with turnover up to Rs. 1.5 crore per year**.
* If your turnover **exceeds Rs. 1.5 crore**, excise duty registration and payment become mandatory.
* Other than the Rs. 1.5 crore exemption limit, **there are no general excise duty exemptions specifically for winding wire manufacturing**, unless you are located in a special zone like SEZ or fall under some notified category.

---

### Summary:

| Issue | Explanation |
| ---------------------------- | ------------------------------------------------------------------------------------------ |
| Service Tax applicability | Exempt if classified as "manufacture" under Section 2(f); else liable on services provided |
| Excise duty exemption limit | Exempt if turnover ≤ Rs. 1.5 crore |
| Additional excise exemptions | Only if special notifications apply (e.g., SEZ) |

---

If you want, I can help you verify whether your winding wire manufacturing qualifies as manufacture under the Excise Act or provide references to relevant notifications. Would you like that?

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