Service Tax on powder coating

[Amit amit]

We are having powder coating plant in Gujarat. We do powder coating on industrial machines,pipes, furniture items. Do we fall in service tax. Also do we fall in Vat . Or in Both.

AI Summary

Powder Coating Plant Tax Inquiry: Exempt from Service Tax if Excise Paid; VAT Applies as Works Contract Tax A company operating a powder coating plant in Gujarat inquired about their liability for service tax and VAT. One response clarified that if the principal manufacturers pay excise duty, the company is exempt from service tax. Another noted that powder coating, being a manufacturing process, falls under the negative list and is not subject to service tax, referencing a specific exemption notification. It was also mentioned that if service tax is not applicable, VAT in the form of Works Contract Tax (WCT) would apply. A final comment suggested verifying registration with Central Excise to determine tax obligations accurately.