Applicability of service tax registration

[BAL KRISHAN GARG]

Respected Rama Krishna Ji , I would like to give thanks to you firstly for giving the valuable clarification on the issued. Now I will brief the nature of work done by A . A is making Blades for ceiling fans , exhaust fans for B in the premises of B on the sheet provided by B alongwith his labour and B after process completion by A i.e.completion of Blades sold to the various parties after paying of Duty on Blades .Total Work up to date is 7 - 8 Lacs till date . Mr. C approached to A for makiing Blades for C in Baddi in Himachal Pradesh and the same process will be repeated here also as in case of B in delhi .Here C is having Excise Exemption .But C specified the condition that A have to be registered with Service Tax . My Querry is 1. Whether A can apply for Service tax registration for getting the additional work from C ? as C may be in the impression that it is labour supply case and the contractor must be registration with the service tax . 2. If A apply the registration in service tax and do the job work alongwith his labour there in baddi in himachal pradesh on the material provided by C whether the ser.tax provisions apply in the fact citied above . 3. and if you advice that it will attract Notification 8 /2005 and will get the exemption whether A will charge ser.tax on both firm billing or only on the billing made to C which is non excise paying . My understanding may be wrong as I believe that if A is doing Job work on the material provided by B then it will not come under the provisions of service tax as B is paying excise duty on the goods processed by A . But in case of C as C is not paying duty the same exemption will not applicable and he will have to charge ser.tax on the billing made to C in Baddi . Thanks once agains for giving valuable suggestion and clarification . My e-mail id : [email protected]

AI Summary

Should Business A Register for Service Tax? Examining Labor Supply and Notification 8/2005 Exemptions for Fan Blade Manufacturing. A discussion on the applicability of service tax registration for a business, A, making fan blades for companies B and C. A operates on materials provided by these companies, with B paying excise duty on finished goods. C, located in Himachal Pradesh, requires A to register for service tax, believing it involves labor supply. Queries include whether A should register for service tax, if provisions apply to work done for C, and the impact of Notification 8/2005 on tax exemptions. The response questions the relevance of Notification 8/2005 and emphasizes considering the excisability of the product.