service tax applicable or not

[Ramakrishnan Seshadri]

Dear Sir,

We are the manufacturers of automobile parts. We want to send to our job worker some fabrics for stiching purpose.

His job is only to stich the fabric and return to us.

Our question is whether any any service tax has to be charged in his invoice or not.

Kindly experts clarify our doubt.

Thanks & Regards,

S.Ramakrishnan

[KASTURI SETHI]

Sh.Ramakrishnan Seshadri Ji,

First of all you should go through all the replies to Issue ID. No. 110641 dated 16.7.2016. Thereafter, you should peruse notification no.8/2005-ST dated 1.3.2005 as amended vide Notification No.19/2005-ST dated 7.6.2005(rescinded) and also read serial no.30 of notification no.25/12-ST dated 20.6.12 as amended and Board's circular mentioned in my reply to the Issue ID no.110641 dated 16.7.2016.

The essence of above all is that either CE duty is required to be paid or ST is to be paid. In case CE duty is not payable by virtue of any exemption notification or Board's circular, ST has to be paid and this activity is covered under the category of, "Other Than Negative List". Prior to 1.7.12, this activity was classified under the category of BAS.

[Ganeshan Kalyani]

Sir, I agree with Sri Kasturi Sir, the same query was discussed in below issue id.

#1Issue Id: - 110641 Dated: 15-7-2016

Thanks

AI Summary

Automobile parts manufacturer seeks clarity on service tax for stitching services; experts reference notifications 8/2005-ST and 25/12-ST. A manufacturer of automobile parts inquired about the applicability of service tax on stitching services provided by a job worker. An expert advised reviewing previous discussions and specific notifications, including notification no. 8/2005-ST and serial no. 30 of notification no. 25/12-ST. The expert explained that if Central Excise (CE) duty is exempt, service tax must be paid, as this activity falls outside the 'Negative List.' Another participant agreed, referencing a similar prior discussion.