Service tax registration

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This query is : Resolved

SUSHIL GUPTA (Querist)

22 January 2014 Dear Sir / Madam,

A company is engaged in 100% Job work business of semi finished Goods to its Sister concern Unit and billing is more than rs 10 Lacs in a year, is it required to have service Tax Registration ?

Thanks

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

22 January 2014 If it is working under Not 214/86 or 83/84/94 then there is no need to have any registration.
If bnot then whether the activity amounts to manufacture- if so then whether an SSI and within the exemption. If not a manufacturing process then service etax liable.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)

22 January 2014 If for the concern for which your company is doing the job work is in relation to -

(a) agriculture, printing or textile processing;
(b) 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);

(c) any goods on which appropriate duty is payable by the principal manufacturer; or

(d) processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines upto an aggregate value of taxable service of the specified processes of one hundred and fifty lakh rupees in a financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the preceding financial year;

then the same is exempted under Service Tax Act (Mega Exemption)

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SUSHIL GUPTA

SUSHIL GUPTA (Querist)

10 July 2014 There is no need to registered in service tax if the sister concern unit seling the finishd product with the payment of excise duty, because as per excise taxation rule tax will be paid only one time on a single product not two time whether it is excise or service tax.
This case is apply only for inter unit job work.

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