6 Replies
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 07 July 2012
By using the word appropriate duty, CBEC meant to say excise duty and not anything else. Also if you refer the erstwhile Business Auxiliary service, there was the same clause which says that if the manufacturer has paid excise duty on the final product,then for processing the said product there is no requirement to charge service tax by the job worker. This was on the ground that if excise duty is applicable on a transaction, there cannot be a service component on the same. Hope it is clear to you now.
CA Darshak Shah
(Practicing CA)
(1889 Points)
Replied 07 July 2012
Ajit Sir...Thank you vary much...
It is clear to me now...
That means if principal manufacturer pays excise duty that means job worker is not supposed to charge service tax.....
Am I right sir?
And
In case manufacturer doesnt pay excise, than for registration in service tax and exemption limit of 9 and 10 Lacs should be calculated from which date?
Unit was existing but service tax is now chargable...So it is confusing me...
Hoping for help.....
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 07 July 2012
yes you are have got it correct. For the exemption limit you will take the turnover of taxable services and not exempted ones. Now base don the above discussion, you can easily identify that when it is considered as taxable and when exempted and once the taxable turnover crosses Rs 10lac liability will arise.
CA.Anupriya Agarwal
(Practising CA)
(110 Points)
Replied 07 July 2012
you need to immediately register (within 30days with Supritendent of Central Excise)after the turnover crosses 9 lakhs.
And you need to pay tax on Financial yr only if last yr turnover crossed 10 lakhs.
CA Darshak Shah
(Practicing CA)
(1889 Points)
Replied 07 July 2012
Thank You Sir and Mam...
It solved my query...
Thanks a lot..
CS RAJESH C.CHOUDHARY
(ASSISTANT MANAGER)
(14607 Points)
Replied 07 July 2012
It is the conditional exemption. In so far as the conditional exemption is concerned, no reversal can be taken.
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