Rewinding Service

[POLYPLEX CORPORATIONLTD]

Sir

We want to do some rewinding jobwork (rewinding of rolls change one side from inside to outside), As it is not amount to manufacture, we have to pay service tax.

Please tell me in which category of Service we have to register with its accounting code. presently we are registered in reverse charges services and Other Taxable Services - Other than the 119 listed.

Regards

Sarvesh Bansal

[Rajagopalan Ranganathan]

Sir,

It is classifiable under Business Support Service with Accounting Code 00440366 for payment of Service Tax. Bur I have my doubts whether the service tax is payable on reverse charge basis since Notification 30/2012-ST dated 20.6.2012 (with effect from 1.7.2012) as amended does not include Business Support Service in the list of services on which service tax is to be paid on reverse charge system..

[Ganeshan Kalyani]

I guess the querist is planning to provide such service for which they would become liable to service tax under forward charge .

Agreed business support service is not covered under reverse charge list . but also need to see the taxable territory of the party under transaction .

[POLYPLEX CORPORATIONLTD]

Thanks for prompt reply. So we have to registered under Business Support service.

Sir we had already in Business auxiliary service, can we provide rewinding jobwork in this category?

[Ganeshan Kalyani]

It is better to amend the registration to include the category of service. though the purpose of category of service is for statistical purpose but it is advisable to incorporate the correct type of service provided .

AI Summary

Business Support Service classification requires registration and forward-charge service tax; reverse-charge likely inapplicable without statutory inclusion.
Rewinding jobwork should be classified as a Business Support Service, requiring registration under that category and service tax payment on a forward-charge basis because reverse-charge notifications do not include Business Support Service; providers should amend registration for accurate classification and consider the taxable territory of the transaction.