Dear sir, Please Define or Give meaning of "Textile Processing" relating to the Job Work.
Textile Processing is Exempt in Excise and also in Service tax ?
Please Guide me about the law relating to the Textile processing in terms of Excise Duty & Also in Service Tax.
As per Notification No. 14/2004-ST dt. 10/09/2004, textile processing is exempted under serive tax and hence we are not liable for paying service tax.
As per this specified notification your services exempt from paying service tax if in the nature of-
(a) Procurement of goods or services, which are inputs for the client;
[(b) production or processing of goods for, or on behalf of, the client;]
(c) Provision of service on behalf of the client; or
(d) a service incidental or auxiliary to any activity specified in (a) to (c) above,
[and provided in relation to agriculture, printing, textile processing or education, from the whole of service tax] leviable thereon under section 66 of the said Finance Act:
thus if your service fall in this categorry these are exempt
Any activity or process on behalf of principle manufactuere, job worker will exempt from service tax. If process amounts to manufacture or production of goods principle manufacture will pay the duty.
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