TaxTMI 
TaxTMI 
If job worker's turnover exceeds the prescribed threshold, 20 lakhs he will have to take registration as he is a service provider. how much service tax is applicable to him thereafter and weather principal can take ITC
Jobworker registration and rate of service Tax
01 Jul 2017 
2 Replies 
1135 Views Asked by
Jobworker registration required once turnover exceeds threshold; applicable tax rate disputed, principal entitled to input tax credit.
Jobworker registration is required once a job worker's turnover exceeds the prescribed threshold and the job worker is treated as a service provider. Advisory replies differ on the applicable levy-one stating 18% as an "all other services" rate with full input tax credit, another stating a 5% charge on the job invoice-but both confirm that the principal may claim input tax credit on the jobwork service. (AI Summary)
Jobworker registration is required once a job worker's turnover exceeds the prescribed threshold and the job worker is treated as a service provider. Advisory replies differ on the applicable levy-one stating 18% as an "all other services" rate with full input tax credit, another stating a 5% charge on the job invoice-but both confirm that the principal may claim input tax credit on the jobwork service. (AI Summary)
