Category - painting - Applicability of notification

[BAL KRISHAN GARG]

Dear Madhwan, In my query,if A can'nt be treated as a Job Worker then under what head ? He is painting c/fan blades for B and B after processing further sales after paying duty.Here i draw your attention that A is producing /processing of goods for ,or on behalf of B and if i not use the word job work and A is processing the goods using the raw mat.or semi finish.goods and B is using the processed goods in relation to manufacture of any other goods specified in Shd.I of cen.excise tariff and B is clearing the goods only after payment of duty.Whether Notification No.8/2005-ST will not apply vide explanation II. Further Manpower agency relation of employee-employer must exit alongwith the individual must under the direction of B but in the instatnt case although relation exist between individual and A but direction of B to individuals not exist so how it will apply ?

AI Summary

Service Tax Applicability on Ceiling Fan Blade Painting: Job Worker or Business Auxiliary Service? Analyze Agreement Terms Carefully. A discussion on a forum addresses the applicability of service tax on a company (A) painting ceiling fan blades for another company (B). The query raises whether A should be classified as a job worker or under another category, considering B sells the processed goods after paying duty. Respondents suggest that A should be liable for service tax under 'business auxiliary service' as the exemption from 01-03-2005 does not apply. Additionally, the classification under 'manpower recruitment and supply service' is considered, advising careful examination of the agreement's terms to determine the appropriate service category.