23 October 2009
I have a moulding machine and i sell a moulded electrical product with a turnover of abt 40 lacs. Recently, i have been approached by a company to do moulding job work for them - raw material being provided by them. i expect a job work billing of abt Rs. 30-40,000 per month.i.e. less than 5 lacs per annum. i know the exemption for service tax is 10 lacs. What i mould is a part of an electrical product which is not a product which can be sold independantly. The company would use this moulding alongwith 30 other components and makes a final product which is excisable and they would inform excise deptt. also, though they are not availing CENVAT.
And i dont want to touch excise deptt. at all.
Do I need to register and charge any service tax on my billing???
Do I need to register or inform or charge any other tax like work contract tax etc.....
23 October 2009
If Jobwork Final product attract to Excise then ask to party for Undertaking of Duty Libility submitt to department and take permision from Excise range for jobwork and give a cpopy of undertaking to you. in this case No service tax applicable on Exciseable Goods.
If Its not attract Excise duty then you should see your gross income/turnover
after crossing 10Lakh Its required to registered with service tax or ammendment in RC for further survice provide.its your responcbility to collect service tax and deposit to Govt.
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