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 and maintain 57 F4, though they are not availing CENVAT. I can keep a copy of those docs if required.
And i don't want to correspond with excise deptt. at all. Can there be a liability in my name any time in the future.??
i understand that service tax registration is NOT reqd till we cross 10 lacs. Do I need to register or inform or charge any other tax like work contract tax
23 October 2009
Now in your case no need to deduct Service tax on Exciseable goos. get relax. No need to any work contract because you are doing job in your promises which is regustered.but follow Labour Rule.
CAclubindia
