Service tax applicability - category

[pravinchandra salian]

In the manufacturing unit we have our own weighing scale for our finished goods near the factory gate. In our factory premises one more factory is operating with different identity. The ingoing and outgoing of material is the same way for both. Now the other factory is weighing their finished in our weighing scale for which charge a nominal amount. Whether service tax is applicable on the nominal amount under the category of Business Support Service or any other category.

AI Summary

Service Tax Not Applicable for Manufacturing Unit's Weighing Scale Use; No Client-Service Provider Relationship Exists A discussion on the applicability of service tax for a manufacturing unit that charges a nominal fee for another factory using its weighing scale. Three contributors provided insights. The first response suggests no service tax applies as the service does not fall under any taxable category. The second agrees, noting past cases where similar services were not taxed, and argues that weighing services do not constitute business support services. The third response concurs, emphasizing the absence of a client-service provider relationship, which is necessary for service tax applicability.