Our company's unit is covered under area based excise duty exemption. Company is doing process amounting to manufacture or production of goods for its customers. These customers are also covered under area based excise duty exepmtion.
Query:
Whether our company is liable to pay service tax on such process amounting to manufacture or production of goods in view of negative list on which service tax is not payable.
Your query bears the answer. Any process amounting to manufacturing is out of the service tax net.
Thanks for reply. But query is that whether service tax is not payable even if area based excise duty exemption has been to our customer (pricipal manufacturer).
If you refer to the Education Guide 4.6.2 it says if central duty is leviable on a particular process as the same amounts to manufacture then such process will be covered under the negative list even if there is excise duty exemption.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
View Details
CAclubindia
