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Service tax is applicable for printing the pamplates

Gottumukkala srinivasu (Accountant) (34 Points)

25 October 2011

Hi this Srinivas, I am STP in Tenali town, AP. My friend have printing press. everyday in his shop max to max 10000 pamplates printing going. he earned money. in this case service tax applicable ?, if Service applicable what are the rules and act amendments. is there any exemptions.

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9 Replies

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 25 October 2011

Mere printing job as per the order of customer is not liable to service tax . However, if the work involves design , drawing, printing of advertisement materials, service tax liability may arise( Zodiac Advertiers, Kerala High court). Design and drawing as such is a taxable activity.

Gottumukkala srinivasu (Accountant) (34 Points)
Replied 25 October 2011

Thank you sir

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 29 October 2011

Composite printing jobs wouldnotbe covered. Processes in relation to printing couldbe covered under Business Auxiliary service, presently exempted under notification 14/2004.

MIHEER DESAI (PARTNER) (24 Points)
Replied 06 July 2012

Dear Sir.

We run a printing press in mumbai. our main job is printing, binding, designing, etc.

Sometimes Design is provided by Party which we print on papers supplied by us.

( Paper, Ink, Plates, etc. provided by us) at the time of billing we mention - Printed Material (Item Descripttion only)

Is service tax applicable on the same?

Also for job work - paper supplied by sub-agents we print as per there requirement....is service tax applicable above MVAT @ 5% ?

Our Turn Over is 25 Lakhs as per last financial year.

Is there any exemption on printing industry under service tax? if so under which rule?

your proper guidance will be highly appreciated.

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 06 July 2012

Hope your query has been resolved by my earlier opinion.

1 Like

Satish (CA Final Student) (479 Points)
Replied 06 July 2012

Dear Madhukar Sir,

Now, wef 1st july 2012, export of service rules are abolished & merged in the main rules (Rule 6A). Clause (d) of sub-rule 1 is one of the conditions that the place of provision of service is outside India. Rule 9 of the the Place of Provision Rules 2012 has specified some services where the place of provision of service shall be the location of the service provider. In the said Rule 9, Intermediary services, which inter alia includes the commission agents, are covered.

Now, my query is -

1. When the Indian sales agent promotes & markets the goods of a manufacturer outside india & procures orders for him, he performs the service in India & the same is consumed outside India by the said manufacturer. Does it contrary to condition (d) of sub-rule 1 of Rule 6A read with Rule 9 of the Place of provision Rules 2012?

2. If yes, then whether the sales commission received by such agents in foreign exchange would be taxable ?

Please clarify.

Thanks.

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 07 July 2012

As per the Place of Provision of Service Rules 2012, the main onus is on the place where service has been received. In your instant case, it would not be correct to confer that the services has been provided in India or rather received in India as pointed out by you above in your case. Hence, as since the service was received outside India and to a non resident it would not be considered as export of service and incidence of tax does not arise on the same.

Satish (CA Final Student) (479 Points)
Replied 07 July 2012

Dear Mr. Dubey,

Can you please elaborate your view giving the proper interpretation of the rules mentioned in my query above ? It seems that you have not considered Rule 9 of Place of provision of Service Rules 2012 which provides for exception.

creature (Others) (21 Points)
Replied 20 September 2012

Dear Sir, i'm running a partnership firm, were we do the designing and printing of brochures and others, we charge the customer in one invoice for designing and printing. we desgin it by myself and get the printing done from printing press. who gives me a bill with vat of 4-5%. I'm from tamilnadu, Pls advice me about what need to be the service tax. Also is there any tax exemption since i pay the printing guy the vat.

Thanks in Advance