16 January 2014
we have a manufacturing unit under SSI exemption.Our unit never crossed 100 lakhs p.a. We are doing job work to Central Excise licensed unit under Rule 4 (6) challan. Now the questin whether our unit is liable to pay central excise duty/service tax. Suppose if answer is no then who will liable to pay the duty/tax. Please explain in a detaile manner.
16 January 2014
Since SSI unit with less than 150 lakhs turnover & total turnover not exceeding 400 lakhs no liability to pay Central Excise duty. For payment of service tax, if value of service rendered is less than 10 lakhs, not liable to pay service tax. The liability of excise duty payment for Job Work, u/r 4(6) of Cenvat Credit Rules 2004 shall be of Principal Manufacturer.
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