Service tax on job work

This query is : Resolved

saravanan natarajan (Querist)
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21 September 2013 Dear Sir,

A & co, is a trading company, doing job work activity to manufacturing company.(all type of clay idols items which is exempted from sales tax.)

We are receiving job work income by A&Co (from the actual manufacturer).

We are giving job work wages to villagers ( job work wages paid by A&Co).

1. for this job work income and payment, service tax is applicable ?

2. If it is applicable income - payment for balance can I pay service tax?

3. for clay items what is the service tax %

4. In sales tax it is exempted so, service tax is also exempted ?

5. Actually we are doing (Job work) activitity for the past last 7 year.

6. If tax is liable, from which year I have to pay service tax.?

Please reply

Ragavendra rao

CA Suresh Jain

CA Suresh Jain (Expert)
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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

saravanan natarajan

saravanan natarajan (Querist)
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24 September 2013 Dear sir

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?

Please help me sir.
thanks

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CA Suresh Jain

CA Suresh Jain (Expert)
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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