Service Tax on Job Work

[Ashok Chopra]

Respected Forum,

 

TEN  jobworkers are working and providing me in house service on piece rate basis and raising bill on me. All ten collectively falling within the threshold limit but individually last year they were within the threshold limit and now, TWO of them are crossing threshold limit of Service Tax upto October, 2012,  pls clarify:-

1. Should they apply immediately for Service tax and charge Service Tax on their future bills?

2. What will be the status of the amount which is less than threshold limit and service tax not charged.

3. My jobworkers are unorganized and do not want to get themselves registered.  being service receipant, is it my liability to get them registered and they should charge service tax on their bills.

4. Whether all ten are liable to get themselves registered or only two who have crossed the threshold limit.

 

pls advice

AI Summary

Business Owner Queries Service Tax Obligations for Job Workers; Clarification on Registration and CENVAT Credit Provided A business owner is seeking advice about service tax obligations for ten job workers providing in-house services on a piece rate basis. Two of these workers have exceeded the service tax threshold. The owner queries whether these workers should register for service tax and if it is the owner's responsibility to ensure their registration. Responses clarify that if the end product is taxable under CETA, no service tax is required from job workers, regardless of turnover. If the process does not amount to manufacturing, only the two exceeding the threshold must register and pay service tax, allowing the owner to claim CENVAT credit.