Fabrication services provided to exporter

[LAXMIKANT ARORA]

A registered service provider has provided fabrication services of ready made garments to an exporter ( who is not an exporting unit in SEZ).

Now I want to know the service tax rate and WCT rate applicable in the following case:-

 

1. When only services are provided.

 

2. When services are provided as well as goods used  are also provided by the service provider in works contract

 

Please refer the relevant notification and section

Thanks

AI Summary

Service Tax and WCT Rates Clarified for Fabrication Services to Non-SEZ Exporters: Goods vs. Services Impact A registered service provider inquired about the applicable service tax and Works Contract Tax (WCT) rates for providing fabrication services to an exporter who is not part of a Special Economic Zone (SEZ). The query focused on two scenarios: when only services are provided and when both services and goods are supplied. The response indicated that if only services are provided, there might be no service tax liability, as garment manufacturing processes are exempt from central excise. If goods are provided, the tax liability depends on the nature and value of the goods transferred.