Pankaj Gupta. (CA & CS Final Student) (56 Points)
18 November 2015Dear Sir
I have a query on Reverse Charge of Service tax on Job work of Textile Goods.
Query
An India Private Limited Company does job work on Textile goods and then export the same. Raw Material and all other related material is provided by company to job worker at job worker premise.
After Job Work that company export the Textile goods.
We want to know whether Reverse charge will be applicable on this condition..
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 18 November 2015
The reverse charge is applicable only to certain specified transactions. Job work is not subject to RCM. Works contract is liable. There is also an exemption no30 in 25/12 mega exemption for intermediate processes in relation to textiles. No liability.
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