Service tax on manufacturer & supplier

OUR  PROP. FIRM AWARDED A TENDER BY A REPUTED GOVT. REFINERY LAST YEAR 2012-13.         WE  MANUFACTURE A CHEMICAL PRODUCT USED IN REFINERY. WE SUPPLY THIS MATERIAL BY OUR OWN LORRY TRUCK AS WELL AS BY MARKET TRANSPORT.

WE MENTION  PRICE OF MATERIAL & CST ON  INVOICE. ( MATERIAL  PRICE INCLUDING PACKING & TRANSPORTAION ). IS SERVICE TAX APPLICABLE ON US OR ON GOVT. REFINERY. 

TENDER VALUE IS OVER TEN LAC. 

SHOULD WE REGISTER UNDER SERVICE TAX?

SHOULD WE HAVE TO PAY PENALTY ON NOT PAYING SERVICE TAX ?

MAY WE OPT VOLUNTERY SCHEME UPTO 31.12.2013 .

 

 

Replies (1)

This is clear case of sale. No service tax is applicable for supply of material. But if the propritory firm is a 

1. any factory registered under or governed by the Factories Act, 1948 or

2. any partnership firm whether registered or not under any law including association of persons or

3. any dealer of excisable goods, who is registered under the Central Excise Act, 1944

and  liable to pay freight to a goods transport agency in respect of  transportation  of goods by road then the entity is liable to pay service tax under reverse charge mechanism. 12.36% on the frieght charges paid to GTA.

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