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 movement challan: advisory view indicates non taxable treatment. Whether service tax applies to plating job work done against an excise movement challan under the Cenvat rule for movement of inputs; the advisory response recorded is that service tax is not applicable, with a follow-up on classification (Works Contract versus Business Auxiliary) and a citation to a supreme court precedent dealing with related issues.