Service tax on labour charges

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We are doing labour work - HEAT TREATMENT. we receive goods which are excisable after full processing. Some of the big customers pay excise duty on them - so we do not charge service tax. We have small customers who send the same goods - but since their turnover is less than 1 crore they do not come under excise and hence dont pay excise duty. Should we charge service tax on such parties. Please clarify and help

Replies (3)

No you are not supposed to charge service tax as the process you undertake amounts to manufacture.

Dear mr.Kiran,

We do processing of components, Heat treatment of the material recd from customers and sent back.

Thanks Mr. Roy.


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