Dear all helping members of CA clubindia,
I will be very thankful to you if you kindly clear my query.
My firm is manufacturing unit which do "rough steel forgings" for auto parts, tractor parts, etc.
I mostly do the forgings job work for two exciseable firms (who are registered under the central excise) which amounts to more than Rs 10 lakhs each per financial year. We receive raw material i.e. steel bars / steel cut pieces from our customers / parties and do the manufacturing process (JOB WORK) of rough steel forgings by using our own raw materials like furnace oil, etc and then return back to them. These two firms further sell their products as (forgings itself / semi-finished / finished product) and also charge central excise duty from their customers.
I also do the same type of forgings job work of non-exciseable firms also, but that amounts to less than Rs 10 lakhs.
I also sale my own rough steel forgings i.e. i purchase my own raw material (steel bars) and follow all the manufacturing process operations on it i.e. cutting, heating, forging, trimming etc. by using our own raw materials like furnace oil, etc and sell the final product as rough steel forgings.
My total sale (job work sale + my own sale) is less than 1.50 crores. So i am not registered in central excise i.e. i does not charge central excise duty from my customers, but i pay central excise duty on the raw material(steel,furnace oil, fuel oil etc.) which i buy.
Am i liable to any service tax or not?
If not, kindly give me the the notification link with justification.
If my job work sale of non-exciseable parties exceed Rs 10 lakhs, will i be liable for service tax?
thanks and warm regards,
Nitin Aggarwal
CAclubindia
