26 June 2012
Dear sir, our client is a manufacturer of readymade garments, he take services from the various persons like cutting of fabric, stiching and tailoring charges of cloth. Whether service tax is applicable on these services or not. If not under which section please specify.
26 June 2012
No service tax is not applicable on such job work as the ultimate product is chargeable to excise duty. In the proposed scheme of mega notification, it is mentioned.
26 June 2012
dear sir, one more question about this query, whether excise duty is applicable on non branded readymade garments also.If not, then specify whether service tax is applicacable on job work related to manufacturing of readymade garments
26 June 2012
No, excise duty is not leviable on unbranded and appropriate duty is not payable by the principal manufacturer. Hence, Service tax will be paid by such job worker if it exceeds the exemption limit of Rs. 10 lakhs.