is liable for service tax

[Guest]

Dear Sir

we are bus body fabricator/manufacture

we make new bus body on chassis supplied by bus/travels owner.

we have 2 option of amount charge

1. gross amount include material and labour

2.  only on labour basis when material suplied by bus owner

 are we liable for service tax under both circumstances.

or liable for exice

plz help 

[YAGAY andSUN]

Dear Ramesh, 

Since, you are bus body fabricator/manufacturer, therefore, you would have to pay the Central Excise Duty.  Service Tax would not be applicable as there is specific exemption in the Negative list in this regard that if any activity which comes under the purview of manufacturing then service tax would not be applicable.

Regards,

YAGAY & SUN

(Indirect Tax Consultants)

AI Summary

Manufacturing activity: bus body fabrication attracts Central Excise duty and falls outside service tax coverage under the negative list. Bus body fabrication performed on owner-supplied chassis is treated as a manufacturing activity and therefore attracts Central Excise Duty; Service Tax is not applicable because manufacturing activities are excluded under the negative list/exemption.