hi all....if i m involved in electoplating and cleaning of metals, does it attract service tax.....kindly clarify....
4 Replies
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 14 August 2011
electroplating work can be classified in works contract as it involves certain consumable stores which can not be ascertained individually for vat and service tax purpose.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 16 August 2011
Is electroplating undertaken as job work ? Or you electroplated and sold your own goods ?
Sudarshan Raghavan
(Chartered Accountant)
(108 Points)
Replied 16 August 2011
Electroplating is undertaken as job work. No sale of goods is invloved..
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 16 August 2011
There are decisions holding that electro plating does not amount of manufacture in absence of emergence of new product. Hence the activity may be taxable under Business Auxiliary service. Basic exemption of Rs.10L is available. If the resultant goods are used by the sender in manufcture of duty paying goods, then you are eligible for exemption under Noti.No.8/2005-ST
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