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Service tax

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Sir,

Please tell me what is the exemption limit for service tax.

Some one told me it is Rs.10 lacs.  Regarding this I want to know

labour charges provided by us and used in the manufacture by 

the customer exceeds the limit, then whether we have to charge

service tax or not. Kindly breifly expain me the condition when we have to

charge or not to be charged service tax

 

with regards

mala

Replies (3)

HI, If you are a service provider and total amount of service provided by you exceeds Rs. 10 lakh in a financial year, you must have to charge the service tax while billing and also register with Service Tax Dept. and obtain the ST number

If you are charging labour charges for a product and in turn, manufacturer is paying excise duty on that product, then there is no liability of service tax.  Pls go thorugh the following point in Mega notification no. 25-2012

30. Carrying out an intermediate production process as job work 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;

Hi,,,,,,,,,,,,

i am Srinu G, working as a accountant my query is about service tax is ........

as a accountant iam making a sales bills with 14.5% of VAT for refilling of fire extinguishers which is including the materials and our people are go to the spot and clean the extinguishers and complete the work and come back.... 

I WANT TO KNOW IT IS INCLUDING SERVICE TAX OR ONLY VAT....... PLEASE CLARIFY


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