Applicability of Service Tax
This query is : Open
30 April 2009
Dear All ,
One of my client is doing job work in the factory of say B on the material related to B and after specific norms of quality of the job work he is raising bills on total no. of pieces he completed on a monthly basis . B after deducting TDS making payments to my client through Cheques only . Here he is doing job work alongwith his labour . My querry is
whether he can be taken as a manpower agency ? as he is doing job work alongwith his labour in the premises of B because for become liable in Service Tax his concern is not a recruitment or labour supply agency / concern and further the billing is completely on piece basis already mentioned on the face of the bills he raised. How the Service Tax authority can treat him as a labour supplliers agency ?
another aspect is he is doing job work of the material related to B on which B is paying and assessable under excise duty in that case notification no 8/2005 also exempt his as a job worker also .
My final querry is whether my client can be held liable under service tax in both the mode reffered above i.e.
1. under manpower recruitment agency
2. under business auxiliary service
after reading the above provisions and facts as i have already reply to the ass.comm. and submitted photocopies of the bills given to B , Form - 16 A , copy of bank statment and copy of ledger in B'S books but neither he cross any question to me but now he has given notice to B and asking the details .
Can anybody clarify the above whether my client can be liable under service tax
My e-mail ID : gargbk2001 @yahoo.com
One of my client is doing job work in the factory of say B on the material related to B and after specific norms of quality of the job work he is raising bills on total no. of pieces he completed on a monthly basis . B after deducting TDS making payments to my client through Cheques only . Here he is doing job work alongwith his labour . My querry is
whether he can be taken as a manpower agency ? as he is doing job work alongwith his labour in the premises of B because for become liable in Service Tax his concern is not a recruitment or labour supply agency / concern and further the billing is completely on piece basis already mentioned on the face of the bills he raised. How the Service Tax authority can treat him as a labour supplliers agency ?
another aspect is he is doing job work of the material related to B on which B is paying and assessable under excise duty in that case notification no 8/2005 also exempt his as a job worker also .
My final querry is whether my client can be held liable under service tax in both the mode reffered above i.e.
1. under manpower recruitment agency
2. under business auxiliary service
after reading the above provisions and facts as i have already reply to the ass.comm. and submitted photocopies of the bills given to B , Form - 16 A , copy of bank statment and copy of ledger in B'S books but neither he cross any question to me but now he has given notice to B and asking the details .
Can anybody clarify the above whether my client can be liable under service tax
My e-mail ID : gargbk2001 @yahoo.com
02 May 2009
He is doing job work under business auxiliary service.
He is not required to pay any ST if he is covered under ST notification 8/2005.
He is not required to pay any ST if he is covered under ST notification 8/2005.
06 May 2009
Sir ,
Thanks for your reply .Here B has also confirmed that A is doing Job Work for him against the material and he is paying excise after the processing of goods.
Authority now confused on the Job Work whether A can be treated as a Job Worder as he is doing work in the Premises of B itself .? In his opinion Job work can'nt be possible in employer's premises in other words he want to say that as in the instant case the material has not moved from factory premises for job work How we can treat it as a job work.
Can you give some decided case in which the job work have been performed in the employer's premises and the department have agreed .In my opinion work performed on the material of other should be treated as job work and it might be anywhere i.e.whatever place it is completed or processed.
Thanks a lot
with regards,
B.K.GARG
Thanks for your reply .Here B has also confirmed that A is doing Job Work for him against the material and he is paying excise after the processing of goods.
Authority now confused on the Job Work whether A can be treated as a Job Worder as he is doing work in the Premises of B itself .? In his opinion Job work can'nt be possible in employer's premises in other words he want to say that as in the instant case the material has not moved from factory premises for job work How we can treat it as a job work.
Can you give some decided case in which the job work have been performed in the employer's premises and the department have agreed .In my opinion work performed on the material of other should be treated as job work and it might be anywhere i.e.whatever place it is completed or processed.
Thanks a lot
with regards,
B.K.GARG
06 May 2009
Sir ,
Thanks for your reply .Here B has also confirmed that A is doing Job Work for him against the material and he is paying excise after the processing of goods.
Authority now confused on the Job Work whether A can be treated as a Job Worder as he is doing work in the Premises of B itself .? In his opinion Job work can'nt be possible in employer's premises in other words he want to say that as in the instant case the material has not moved from factory premises for job work How we can treat it as a job work.
Can you give some decided case in which the job work have been performed in the employer's premises and the department have agreed .In my opinion work performed on the material of other should be treated as job work and it might be anywhere i.e.whatever place it is completed or processed.
Thanks a lot
with regards,
B.K.GARG
Thanks for your reply .Here B has also confirmed that A is doing Job Work for him against the material and he is paying excise after the processing of goods.
Authority now confused on the Job Work whether A can be treated as a Job Worder as he is doing work in the Premises of B itself .? In his opinion Job work can'nt be possible in employer's premises in other words he want to say that as in the instant case the material has not moved from factory premises for job work How we can treat it as a job work.
Can you give some decided case in which the job work have been performed in the employer's premises and the department have agreed .In my opinion work performed on the material of other should be treated as job work and it might be anywhere i.e.whatever place it is completed or processed.
Thanks a lot
with regards,
B.K.GARG
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