Liability and applicability of service tax

[shyamal roychowdhury]

My client recived a job work of fabricating garments . He receives all meterials from his client including evn small things necessary for fabrications . He has his own machines & his own tailors who are in his role . The client deducts TDS FROM THE RUNNING BILLS SUBMITTED BY MY CLIENT. Now The clientdo not give sevice tax as he sends the meterials on challan & get back garments through challan.. meterials used & surplus meterials are returned. My client uses the premises of his client . The garments do not attract Excise duty so neither my client nor his clients pays any excise duty or sale tax . Now my query is WEATHER MYCLIENT ANY WAY COME UNDER ANY SERVICE TAX CLAUSE OR HAS HE ANY LIABILTY FOR SERVICE TAX . HE IS NOT EVEN REGISTER WITH SERVICE TAX DEPT .

AI Summary

Garment Fabrication on Provided Materials: Service Tax Liability Questioned; Possible Exclusion Under BAS, No Manufacturing Tax Applicable. A client engaged in garment fabrication using materials provided by another party is questioning their liability for service tax. The client uses their own equipment and labor but operates from the premises of the material provider. The materials are returned post-fabrication, and no excise or sales tax is paid due to the nature of the garments. One response indicates no service tax is applicable, while another suggests the activity might fall under Business Auxiliary Service (BAS) but excludes manufacturing as per the Central Excise definition, thus not liable for service tax. The client is not registered with the service tax department.