i am working with manufecturing unit. my query is that there are two supplier doing job work for us. in their bill one is charging both service tax and cst on total amount. when we ask for seggregation, they said they can't given the same. as per rule both could be charge the same amount. and other is not charging any tax, what is the reason?
06 July 2012
Any process amounting to manufacture or production of goods is in the negative list. If process does not amount to manufacture or production of goods, and is further not covered in clause 30 of the mega notification, the same is liable to service tax.
If Central Excise duty is leviable on a particular process, as the same amounts to manufacture, then such process would be covered in the negative list even if there is a central excise duty exemption for such process. However if central excise duty is wrongly paid on a certain process which does not amount to manufacture, with or without an intended benefit, it will not save the process on this ground
06 July 2012
Carrying out an intermediate production process as job work in relation to any goods on which appropriate duty is payable by the principal manufacturer is exempt from Service tax.
06 July 2012
Both VAT and Service tax can not be charged on the same amount except in case of works contract where the rate of service tax will be lower.
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