Hello All!,
I have a query regarding service tax on works contract w.r.t. our garment export pvt ltd co. Herein we are manufacturing ready made garments only for export, hence not covered in Excise. We get the garments manufactured in house as well as give it to tailors outside our factory. They take the fabric and stitch and return back the garment, thereby raisng an invoice.
I will apprecaite an opinion whether this will come under works contract or job work wherein it will attract service tax under reverse charge. It can be called a job work which amounts to manufacture but there is no excise being paid.
Please advise.
Thanks,
Nitin Vaid
CAclubindia
