electroplating work can be classified in works contract as it involves certain consumable stores which can not be ascertained individually for vat and service tax purpose.
There are decisions holding that electro plating does not amount of manufacture in absence of emergence of new product. Hence the activity may be taxable under Business Auxiliary service. Basic exemption of Rs.10L is available. If the resultant goods are used by the sender in manufcture of duty paying goods, then you are eligible for exemption under Noti.No.8/2005-ST
Leave a Reply
Your are not logged in . Please login to post replies