process : manufacturing Chemical pesticides.
Is manufactrure liable to pay the service tax on freight for the goods use for production of exempted goods from Excise duty &sale tax.
what about service tax on if manufacture also do the job work related activities also
Manufacturer has to pay service under GTA irrespective of the fact whether you are manufacturing exempted or taxable products.
Service tax is payable only on service portion .if manufacturer is also a job work then levy of service tax depend whether process undertaken by him amount to manufacture or not .
if process amount to manufacture then he could avail exemption under notification 214/86 so no service tax apply
however if process does not amoun to manufacture then service tax apply
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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