Applicability of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2012 Hello
My query is that If a private limited company selling the paints, fabric to the individual, hotels etc. Company till date issued debit note for stitching Charges around 7 Lakhs and debit note for Labour charges around 4 Lakhs.
Whether service tax is applicable to the company because neither Stitching service charges nor Labour service Charges exceeds the limit of 10 Lakhs?
Whether basic limit of 10 Lakhs is for service basis or assesses basis ?

Pradeep Nainawati

Pradeep Nainawati (Expert)
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07 November 2012 It's assesses based.

But the activity of Trading is exempt under Section 66D.

So if your's is a works contract then only you have to charge ST on 1 Lakh