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Service tax - notification no. 30/2012

Kunal Mittal (FINANCE OFFICER) (580 Points)

04 August 2013

We are doing job work of printing on raw materials provided to us by a company. Ours is a partnership firm. They provide us raw materials and we do the intermediate jobs and provide them finished goods. We are doing this from April 2012 and charging them service tax at 12.36% on gross value.

Now they are saying that according to NOTIFICATION NO. 30/2012 they are not entitled to pay any ST at all or in a proportion of 60-40. We fail to understand this. Kindly guide us.

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9 Replies

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 04 August 2013

Dear Kunal Mittal,

your client is partially right.
As the service provided by you constitutes WORKS CONTRACT service.
And, as per Notification No. 30/2012, you are required to charge/collect and pay @ 50% of Service Tax Liability and your client is required to pay remaining 50%.

And, remember service tax is charged only on the Service Portion of the Gross Amount, not on the materials supplied.

Conditions:-
1. service receiver must be a Company.
2. 50% service tax is payable by service provider and 50% by service receiver. The service receiver liable for 50% even if service provider does not charge service tax.

Thanks and regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
+91-9891400405

2 Like

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 04 August 2013

Dear Kunal Mittal,

Sorry to say.. but your service would be covered under Mega Exemption Notification No. 25/2012 dt. 20.06.2012.... and you would not be required to pay any service tax... as this service have been specifically included under the said notification..

which reads out as:-
30. Carrying out an intermediate production process as job work in relation to -
(a) agriculture, printing or textile processing;
(b) ........... etc... etc...

Thanks and regards,

CA Lovely Arora
ca.lovelyarora @ gmail.com
+91-9891400405

1 Like

Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 04 August 2013

No need to pay service tax for carrying out an intermediate production process as jobwork as relation to printing under mega exemption notification No. 25/2012-ST.

1 Like

Kunal Mittal (FINANCE OFFICER) (580 Points)
Replied 06 August 2013

Is there any upper limit for the value of such job work without stax.

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 06 August 2013

Dear Kunal,

There is no upper limit for such exemption.

That service has been specifically exempted under Notif. No. 25/2012 without any condition.

ANUP P NAIR (ACCOUNTS EXECUTIVE) (25 Points)
Replied 06 August 2013

Dear Kunal,

To avoid any dispute from the department regarding the end use, please take a declaration from your principal stating that the raw material so involved are used by them in relation to goods on which appropriate duty is payable by them.

Also, please be sure that your activity does not involve any transfer of property in goods as sale of goods where it is leviable to VAT or CST otherwise your activity will be covered under Not.No.30/2012 for paying service Tax under Reverse charge Mechanism under Works Contract Service in the Ration of 50:50 .

If it is purely job work, Not. No.25/2012 will apply and full service Tax will be exempt.

Kunal Mittal (FINANCE OFFICER) (580 Points)
Replied 07 August 2013

Sir: i'm still confused on this one. Does my principal's using the credit of Excise duty on purchase of said raw material does have any bearing on my levying service tax on job work. Also we are in a excise free zone. Does this have any bearing.

cjmehtaco (CA) (21 Points)
Replied 06 November 2013

how to pay payment of service tax 50% by the party as per notification no.30/2012 , if the other party has paid 50% and tel us to pay 50% by service provider.

If any body has form for the same ,please provide us .

CA CHETAN MEHTA

9322261692

email.: cjmehtaco @ yahoo.com

karan sharma (Student CA Final ) (106 Points)
Replied 28 August 2014

Today i booked a ticket from jammu to delhi and then jammu to katra why the service tax is charge by indian railway on both transaction.?? place of provision as per rule 11 is starting point which is non taxable territory (jammu) WHY THE SERVICE TAX IS CHARGE BY INDIAN RAILWAY????