Service tax when service provider is a manufacturing co.

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RAHUL B. (Querist)
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29 November 2014 We are a manufacturing concern ,& also providing taxable service of renting of commercial properties to some other companies. The total services provided by us doesn't exceed Rs. 10 lacs threshold. However, we are paying crores of rupees on reverse charge basis for services availed by us. Is it mandatory for us to issue taxable invoice to the tenant companies ? Are we liable to pay the service tax on rent ?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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30 November 2014 In computation of Rs 10 lacs as per notification no 33/2012 dated 20th June, 2012 manufacturing activities are not included.

Further, both Service Tax and Excise law operate in different field so there is no question of clubbing

RAHUL B.

RAHUL B. (Querist)
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30 November 2014 Either I couldnt explain my point or you didnt understand it .. what i want to know is , whether payment on a/c of Reverse charge shall be included in computation of Rs.10 lacs limit ?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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30 November 2014 No it will not clubbed while computing threshold limit under notification no 33/2012 dated 20.06.2012. You have to pay your Service Tax liability in cash only.

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