22 September 2013
PLEASE CLARIFY :- 1. whether A supplies clay or clay is used by you. 2. whether the wages to villagers is paid directly by A 3. if wage is paid directly by A then what is your role
My company name is A&Co. I am doing job work activity. I got job work order from different companies ( B&Co, C&Co., E&co.) to do different work (clay items, small work), I am receiving materials from them
I am (A&Co) giving order to villagers( individuals (Ram, sita, gopal etc.) , I am ( A&Co) also giving same materials to villagers.
After completion, all material sent to the concerned (B & Co, C&co etc.)
Now, for getting job work income from companies and giving job work wages to villagers, for this activities, I have to pay service tax or not.
1. Please advise is applicable or not ?
2. I am doing it for 7 years. So, from which date I have to pay service tax, if applicable. ?
3. if applicable, job work income - job work wages for balance can I pay?
28 September 2013
Dear Mr. Natrajan, Sorry for delayed reply.
Any process carried (Job work) for manufacture or production of goods is not a Taxable service, Toys making is a process of manufacture/production which is in negative list of service and you are not liable to pay any tax.
earlier also it was exempted from tax
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
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