Dear Sirs, We are filling our material in a hallow doors, where the doors are supplied by our customer. We have purchas order for filling charges but not as job work charges. Paying Excise duty on material involved in the transaction not paying Service tax amount. is there any complications in this transaction?.
Service tax applicability
chaganti srinivas
Is Service Tax Applicable on Filling Materials in Hollow Doors? Consider Manufacturing Status and Excise Duty Implications. A forum participant inquired about the applicability of service tax on filling materials into hollow doors supplied by a customer, with excise duty being paid on the materials. Two responses were given. One respondent suggested that the process might be considered manufacturing, thus subject to excise duty but not service tax. The other respondent highlighted the complexity of the transaction, advising to determine whether the supplier is an excisable unit and whether the activity constitutes manufacturing, which would affect the tax obligations. Both emphasized the need for complete facts to reach a definitive conclusion. (AI Summary)