17 December 2009
If your process is coming under CENVAT you have no excise if you are in the basic exemption limit for excise and it will not be applicable to service tax if your job work is a manufacture under CENVAT. However, if it is not a manufacture per CENVAT, then you have to pay service tax on Business Auxiliary services after you cross the exemption limit of 10 lakhs. Therefore, first you check the CENVAT Tariff and see your item code if it is applicable to CENVAT. then even job work for that item will be under CENVAT and if you fulfilthe conditions there it will be exempted.
18 December 2009
Thankx for your reply.could you plz tell me is service tax also applicable if we are doing machine embroidery on our own fabric. And if applicable what will be the the amount limit.