03 August 2013
ours is a partnership firm in the excise free zone of HP. We have done job work on material provided by a company to us in 12-13 and charged service tax @ 12.36% on gross amount. Now the company says that we have charged wrong st because of the notification. We have seen the official notification but fail to understand the official language. Can anyone make us understand the implication in our case and how we should have charged it and also what the notification means.
Guest
Guest
(Expert)
04 August 2013
There is no exemption from service tax in the excise free HP zone. If your services were taxable, you are right in charging service tax.
04 August 2013
1. the service provided by you a job work service and not a works contract as per the definition of works contract (please visit http://hathaibaj-sureshjain.blogspot.in/ );
2. In view of the above RCM as per 30/2012 is not applicable and service tax is to be charged and paid, if chargeable, by you;
3 If the process which you are carrying on the material provided by the principals is a process of manufacture then service tax is not at all applicable in view of the Negative list u/s. 66D (f)
04 August 2013
The raw material is paper, polyester film. We print on that make soap wrapper out of that and supply them the final product as soap wrapper.