SERVICE TAX REGISTRATION

[SURYAKANT MITHBAVKAR]

our unit is registered under Service Tax Act. we run one more unit where we are doing only labour job for material received from our pricipal unit. In above circumstances is it necessary to take service tax registration and issue service tax invoice for labour job to Principal unit where as our Balance Sheet is consolidated.

AI Summary

Service Tax Unnecessary for Inter-Unit Labor Jobs Within Same Ownership, No Separate Registration Required A business owner inquired about the necessity of obtaining a separate service tax registration and issuing service tax invoices for a labor job conducted by one unit for another unit under the same ownership. The response clarified that service tax cannot be applied to services provided within units of the same owner, as they are considered a single entity. Therefore, the labor activity between these units is not subject to service tax, and separate registration or invoicing is unnecessary.