Contract to manufacture

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2012 Hello sir
Whether contract to manufacture some cement products are covered under Service tax provision........
Eg... Cement waste bin etc..

If it is liable for service tax, in which category it should be included ...if material for the work are supplied by the contractee..

RENGARAJ R.K

RENGARAJ R.K (Expert)
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05 July 2012 It comes under job work, if the contractee supplies the material. If the end product amounts to manufacture as per the central excise act at the hands of the contractee, all the labour contract/jobwork is exempted under the new provision. Pure labour contract is also liable to service tax if the turnover exceeds 10 lacs in a year.