11 July 2011
hello sir/madam, please suggest me, that one customer who has sent us material for labour job.he sent material to us on excise challan and whether we have any liablity to impose service tax on it or excise duty or no tax will be levied ? and what will be its answer if party sends us material on non excisable challan?
11 July 2011
Under 8/2005 the job wokr done on goods which suffer duty in the hands of the princiapl/ supplier of Raw material, wouldnot be liable to service tax. The manufacturer normally remove the goods under Not 214/86 / Rule 4(5)of CCR. If this is challan you are referring to then on such goods processed no ST is tobe charged.