Works contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2014 A company is printing newspapers/magazines/pamphlets as job work using its own material & machine for printing and is paying only VAT/CST on 100% sale value. Is this the right approach or should it be treated as works contract? Is service tax applicable in such cases???

Annu Agarwal

Annu Agarwal (Expert)
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20 October 2014 See if the printing is done on job work,then the same is exempted from service tax as per serial no.30(a) of notification no.25/2012 .

Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2014 Does that mean that VAT will be applicable on entire sale amount??

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Annu Agarwal

Annu Agarwal (Expert)
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20 October 2014 yes,vat wil be levied on 100% sales amount.

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