i would like to know the service tax implication on labour used in manufacturing a product. end product is exicise exempted one. this query is in respect of negative list announced in the budget 2012. icame to know that the labour used in converting product A to product B doesn't attract service tax as per negative list. under what circumstances it is exepmted.
Would service tax be leviable on processes on which Central Excise Duty is leviable under the Central Excise Act, 1944 but are otherwise exempted?
No. If Central Excise duty is leviable on a particular process as the same amounts to manufacture then such process would be covered in the negative list even if there is a central excise duty exemption for such process.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
View Details
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
CAclubindia
