ST on Job work done by Saw Mill

[NANDKUMAR SAGWEKAR]

Dear All learned member , I like to present my querry relating to applicability of service tax for job work undertaken by Saw Mill. The activities are as below :

1. Individuals ( Farmers / persons etc ) brings raw wood i.e. trees after cutting and get these raw

     wood  cuts into different pieces or sizes according to the requirement from Saw Mill.

2. Saw Mill charges to their client ,  say Job work charges / labour charges based on

     square feet of wood cut by the saw mill.

3.  The wood after cutting into pieces or required sizes along with scarp generated is returned to

     the concerned persons.

4. Service provider or service receiver are not registered under Central Excise / Service tax

Whether Saw Mill Owner is under service tax net . The GTO from April 2011 till date is Rs.15,76,000/- +

 

Thanks

A M SHEMBEKAR

CELL 9421187122

[Vijay kumar]

Business Auxiliary Service include production or processing of goods for or on behalf of the client. It does not include any process that amounts to manufacture of excisable goods, which means it includes non-excisable goods also. Hence yr activity attracts service tax under BAS after crossing the threshold limit of Rs.10 lakh.

[NANDKUMAR SAGWEKAR]

Thanks Mr. Vijay Kumar  for giving us the answer of my querry

 

A M SHEMBEKAR

AI Summary

Business Auxiliary Service: saw mill job-work for cutting raw wood is taxable once threshold turnover is exceeded. The saw mill's cutting of raw wood for clients constitutes Business Auxiliary Service, which covers processing of goods for or on behalf of a client and excludes processes amounting to manufacture of excisable goods; therefore the saw mill's job-work charges are taxable under service tax as Business Auxiliary Service once the provider's gross turnover exceeds the statutory threshold, irrespective of current registration status.