Job work

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2012 Sir...I am a job worker.If i prepare invoice inclusive of material cost, on what amount vat will be charged and on what amount service tax would be charged?

CA. Hari Kishan

CA. Hari Kishan (Expert)
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16 April 2012 You could refer to the works contract rules under VAT act of your state..

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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16 April 2012 If you are in maharashtra-

MVAT- 5% of gross amount
Till date No Service tax is applicable for job worker.

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CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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16 April 2012 yes agree with above expert.
no service tax on job workers.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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16 April 2012 Till your TO does not exceed 10 L you have to charge VAT as soon as it exceeds 10L you will fall under the category or composite contract and you have to charge both VAT & Service Tax

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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16 April 2012 Even if the amount exceeds the limit of Rs. 10 lacs, no service tax for Job worker.
but the VAT will be charged.
There is no such category for composite service in service tax except Works contract, and as far as my knowldge is concern it does not fit in the defintion of works contract.