SERVICE TAX APPLICABLE FOR LABOUR CONTRACT

This query is : Resolved 

23 March 2009 Dear Experts

We are doing wooden crate manufacturing, we have pay Excise Duty on final product. If we given the production on contract for unit basis, Is Service Tax applicable for that. If we paying as labour charges service tax is applicable or not?


Harsha

23 March 2009 No, As you are paying Excise duty on your final product the service tax will not applicable.
Thanks, S. Banerjee

23 March 2009 Thanks for your reply

One more doubt, we are availing SSI Exemption on Central Excise, That period aslo applicable for the Service Tax Exemption. Any Exemption Notification


Harsha


24 March 2009 The notification exempting Job Workers is applicable if the final product is cleared on payment of duty.

As such, if SSI exemption is availed, the said notification is not applicable, in my humble opinion.

How ever, please seek more opinion.

24 March 2009 you are paying excise then no sevice tax on job work. if supplier raising labour charges then service tax applicable.



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