Chargeability

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Querist : Anonymous (Querist)
21 April 2013 Is manufacturing of textiles (weaving activity) chargeable to service tax as this manufacturing activity is not subject to Excise duty? Is any RCM services appliacable eg:- Works Contract for outsourcing production of cloth?
Please help.

21 April 2013 if you providing the same as job work to other then exempt under notification 25/2012 , entry no . 30 which says..
Carrying out an intermediate production process as job work in relation to -
(a) agriculture, printing or textile processing;.

if you not doing the same as job work and using your material, same could be taxable on service part, if there is vat on material in your state laws.

RCM is applicable under work contract only when the contractor is using his material. if you providing the material, then textile processing is exempt as i mentioned above.



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