Vivek B. Bhinde (Action Creates Energy !!) (824 Points)
30 April 2013Please Help...
Mr. A receives Hand Embrodiery Charges from his customers. He Uses all the material like Cloth, Thread etc used in Hand Embrodiery..Whether such hand embrodiery charges comes under service tax ambit or VAT will be applicable since all the material is supplied by Mr. A...
Thanks..
PARMITA MAZUMDER
(CA- Practice)
(386 Points)
Replied 30 April 2013
As Mr A is delievering the product after investing his own cloth and stiching material it will be sale. But yes it can be subject to state VAT.
Vivek B. Bhinde
(Action Creates Energy !!)
(824 Points)
Replied 30 April 2013
What about service Tax ? Will it not be Considered as Labour Charges if the Cloth (on which hand embrodiery is performed ) is supplied by the Client ?
Vivek B. Bhinde
(Action Creates Energy !!)
(824 Points)
Replied 30 April 2013
Whether Hand Embrodiery Charges are covered under Srevice Tax Ambit ? if Mr. A received all the Material From his Client & He Performed only Hand Embrodiery Work...
PARMITA MAZUMDER
(CA- Practice)
(386 Points)
Replied 30 April 2013
If the cloth is supplied by customer then it is a contact for work and labour. Does the same changes the character of the cloth? It may be manufacturing.
Vivek B. Bhinde
(Action Creates Energy !!)
(824 Points)
Replied 30 April 2013
Yes after performing the Hand Embrodiery the character of cloth is changed.....
PARMITA MAZUMDER
(CA- Practice)
(386 Points)
Replied 30 April 2013
Then it amounts to manufacturing!! ANy process which to manufacture is not covered under service tax..
Vivek B. Bhinde
(Action Creates Energy !!)
(824 Points)
Replied 30 April 2013
As per my Knowledge ST is not applicable if on manufacturing of Excise Goods, Principal pays Excise Duty.. But here nothing like that....then ???
Correct me if I am Wrong...
PARMITA MAZUMDER
(CA- Practice)
(386 Points)
Replied 30 April 2013
U mean to say he is a job worker? Job work relating to textile is exempt. If it is done under cenvat provisions then st is not applicable.
Vivek B. Bhinde
(Action Creates Energy !!)
(824 Points)
Replied 30 April 2013
Ya He is a Job Worker only Performs the Hand Embrodiery as per the Orders of Client...
Thanks for the Help.....is there any Case law relating to this.....Please suggest......
CAclubindia
