Service Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2011 We are a MANUFACTURING UNIT (Partnership Firm). We are doing some Labour Charges/Job Work.

This Year till date (2010-11) we are Doing Rs. 12 Lac(Appro.) Labour Charge/Job Work.

Then please suggest this situation SERVICE TAX is applicable for Us.

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
Follow

21 February 2011 If the job work amounts to manufacture, service tax is not leviable. To comment on manufacture, nature of process has to be examined.

CMA.Subhabrata Pramanik

CMA.Subhabrata Pramanik (Expert)
Follow

21 February 2011 You hv clearly mentioned that you are doing labour charges/job work and earned income on it, whether it be a manufacturing or service unit.
It crosses limit of Rs.10lacs as per Service Tax basic exemption.
So Service Tax registration is required

Upgrade to CAclubindia Pro. Subscribe Now!