Service Tax Category

[Sanjay S Bait]

The company (In Maharashtra)is engaged in doing platting work on the item provided by the client and also uses self-purchased raw materials on that item during process. This involves both Vat (8% WCT) and service tax under works contract.
Query is : If Job work is done against EXCISE CHALLAN FOR MOVEMENT OF INPUTS/PARTIALLY PROCESSED INPUTS/ CAPITAL GOODS Under CENVAT RULE 4(5)(a), then Service tax is applicable? If yes, What rate? and under which category : 'Business Auxiliary' or 'Works Contract'. Please advice

[MUKUND THAKKAR]

In your case service tax is not applicable to you.

[Sanjay S Bait]

Thank you sir,

But category would be same as "Works Contract" ?

[YAGAY andSUN]

Dear Sanjay,

Please check following judgment in this regard.

M/s Maruti Suzuki India Ltd. vs. CCE, 2015 (3) TMI 784 Supreme Court.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Service Tax Applicability on Job Work under Excise Challan: Business Auxiliary or Works Contract? CENVAT Rule 4(5)(a) Explored. A company in Maharashtra engaged in platting work using both client-provided and self-purchased materials is questioning the applicability of service tax on job work done under an excise challan according to CENVAT Rule 4(5)(a). The main concern is whether service tax applies and, if so, under which category: 'Business Auxiliary' or 'Works Contract.' One response indicated that service tax is not applicable, while another suggested referring to a Supreme Court judgment involving Maruti Suzuki India Ltd. to determine the appropriate category, implying 'Works Contract' may be relevant.