vinayak (-article assistant) (93 Points)
14 July 2015I have the following queries:
1.Im in company that manufactures machines.In the process of manufacture, the steel sheets are purches by us and sent for fabrication(i.e cutting and welding).The Bill is charged to us as "labour charges only", so will there be any service tax applicable on such charges.
2.Also please suggest some good handbook for service tax.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 14 July 2015
Yes..service tax is applicable on jobwork but if the jobworker is a small service provider (taxable service <10 lacs), then ST may not be charged.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 18 July 2015
pl see free online book on hiregangeacademy.com
1. ST Liable unless the machinery manufacturer is paying excise duty- if so exemption under mega exemption.
2. If liable pr yr less than 10 lakhs then exempted upto 10 Lkahs.
CAclubindia
