Service for own branch

[Prem Ruhela]

Dear Sir,

We have two manfacturing unit in one state but in different city with same name. i just want to know that if we provide job work to iind unit like machining then we should pay service tax on it or not.???????????  

 

AI Summary

Service Tax Not Applicable for Job Work Between Units of Same Entity; Check Separate Registrations for Transactions. A user inquired about the applicability of service tax when one manufacturing unit provides job work to another unit within the same state but in different cities. A chartered accountant clarified that service tax does not apply to services rendered between units of the same entity, as they are not considered separate persons under the law. Another contributor confirmed that self-service is not taxable. A third respondent advised checking if both units have separate service tax registrations and if there is a monetary transaction, which would necessitate service tax.