Jobworker registration and rate of service Tax

[Rajkumar Chandnani]

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

AI Summary

Job worker surpassing 20 lakh turnover must register for GST; debate over 18% vs 5% service tax rate persists. A job worker whose turnover exceeds the threshold of 20 lakhs must register for GST as a service provider. The applicable service tax rate is debated, with one party suggesting an 18% rate with full Input Tax Credit (ITC) for unspecified services, while another suggests a 5% rate on job invoices. Both agree that the principal can claim ITC.