We are manufacturers of steel doors & windows and pay excise on our products. We also avail service tax credit.
We also procure steel doors from the market and sell the same as a trading item. We do not charge any excise duty as there is no modvat credit availed and there is no manufacture involved.
What is the status of service Tax reversal prior to 01.04.2011 & after 01.04.2011. i remember seeing some article on Service Tax on Trading in Budget of Feb 2011.If applicable method of calculation of service Tax may kindly be shown.
Clarification on Service Tax: No Service Tax on Trading Steel Doors; Excise Permission Required for Factory Premises Trading. A manufacturer of steel doors and windows inquired about the service tax implications on trading activities involving steel doors procured and sold without manufacturing or availing modvat credit. They sought clarification on service tax reversal status before and after April 1, 2011, referencing a budget article from February 2011. A respondent clarified that no service tax applies to normal purchase and sale activities. However, prior permission from the Excise department is required if trading occurs from factory premises, emphasizing the need to consider Central Excise liability for such trading activities. (AI Summary)
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