Conversion charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2012 Hi sir,
my client is having income from conversion charges(conversion charges-just making into packing materials (all milk,tera packs,etc provided by customers(debtors) we are just convert into packets by use of our machinery is service tax applicable for this please provide solution as soon as possible

RENGARAJ R.K

RENGARAJ R.K (Expert)
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07 September 2012 Conversion charges are taxable. But it seems you are doing some jobwork for some parties. Please ask the parties whether they are paying any excise duty for their products. If yes, there is no service tax for you.

If no, according to service tax rules, you will have to pay service tax when your income crosses 10 lacs in a year. You have to apply RC when the conversion charges claimed by you crosses 9 lacs.