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service tax on contract payments

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Querist : Anonymous

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Querist : Anonymous (Querist)
26 August 2010 Sir, is service tax applicable on contract working/Job work. In both the cases, i will received the material from the party, only I will do labour work. is there any difference, If I use some materials from my side.

27 August 2010 Service tax apply on Labour charges provided In both cases, categary based on your service nature.

If your turnover is less than Rs.10 lakh, then service tax will not attract on your servvice, you can take exemption

27 August 2010 On the material part also service tax has to be paid even if they are received from the awarder at free of cost vide notification No. 23/2009 dated 07/07/2009.


28 August 2010 service tax is payable on job charges, if the process undertaken does not amount to manufacture. if the process under taken amounts to manufacture then the excise duty is payable on the cost of material plus labour charges even if the material is supplied by the principal.



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