Service Tax on Job Work

[narendra arora]

Dear Experts 

We have to received a machine part / component from Nepal for Metalic Coating Work and same will be return after coating.

Please advice, Is Service Tax is applicable on it and what is procedure for import the said component ?

Regards

Narendra 

[SHIVKUMAR SHARMA]

Mr.Arora

Yes,Service tax is Applicable on its.If you are crossed your limit of Rs.10 Lakh.

[narendra arora]

Respected Sivkumar ji

Thanks for your reply, but I am still confused as Place of provision Rule ( performance based services ) 4(a) clear that “sub rule shall not apply in case of a service provided in respect of goods that are temporarily imported into india for repair, reconditioning or reengineering for re-export, subject to condition as may be specified in this regards”

You are requested to kindly reply at earliest.

Narendra ARora

[narendra arora]

Dear Experts 

Please reply !

Narendra

[narendra arora]

Respected Forum

Please reply !

Thanks

[Hasmukh Patel]

You are 100 percent exemted for service tax or excise duty.

No any liability of duty in your case. if any confusion pl.con. me.

AI Summary

Place of provision rule exemption: temporary import for repair or reconditioning may exempt service tax when goods are re exported. Whether service tax applies to metallic coating of a machine component temporarily imported for return after coating; conflicting informal advice appears-one view applies service tax if the supplier exceeds a turnover threshold, another asserts full exemption. The querent invokes Place of Provision Rule 4(a), which excludes services in respect of goods temporarily imported for repair, reconditioning or reengineering for re export, subject to specified conditions; the key question is whether the coating service meets that exclusion and its conditions.