application of service tax

[NARESH BANSAL]

Respected Sir,

we are offset printers of educational books. Doing job work only .The paper is supplied by publisher and he is paying excise duty on paper.But printing ink, plates and chemicals are used by our side.Further the binding is done by another person.

Sir, whether service tax is applicable or not

[YAGAY andSUN]

I feel that Works Contrat Tax under Rajasthan VAT Act, will be applicable on such transaction since the goods like ink, plates and chemicals are being used in the executing the works contract.

Service Tax would not be applicable.

[Vijay kumar]

In terms of sl.no.30(c) of Notification No. .25/2012-ST, job work involved on any goods on which duty is paid by the principal manufacturer is exempted from service tax. In your case, pl ascdertain from the principal mfr whether he is paying duty on the educational books (perhaps books are exempted from payment of excise duty). If for any reason no duty is paid, then you are liable to pay service tax on the gross value charged for your service.Credit of duty paid on paper can be taken, but its value has to be included for the purpose of payment of service tax.

AI Summary

Offset Printer's Job Work May Be Exempt from Service Tax Under Notification No. 25/2012-ST; VAT May Apply Instead. An offset printer of educational books inquires about the applicability of service tax for job work, where the publisher supplies paper and pays excise duty, while the printer uses ink, plates, and chemicals. One respondent suggests that Works Contract Tax under the Rajasthan VAT Act applies, not service tax. Another respondent cites Notification No. 25/2012-ST, indicating that job work on goods where the principal manufacturer pays duty is exempt from service tax. If no duty is paid on the books, the printer must pay service tax on the service's gross value, including the paper's value.