TaxTMI 
TaxTMI 
Service Tax v/s In house Contractors
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....ervice Tax v/s In house Contractors<br> Query (Issue) Started By: - Ashok Chopra Dated:- 2-4-2014 Last Reply Date:- 4-4-2014 Service Tax<br>Got 6 Replies<br>Service Tax<br>I am an exporter of Readymade Garments and having valid Registration Certificate of Service Tax. I am receiving services of In House Jobworker for stitching and finishing on piece rate basis. They are raising me invoices and are....
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.... not charging any service tax, but their transaction of each job worker is much more than stipulated limited. I am deducting TDS and paying regularly to Income Tax Department My queries:- 1. Whether i am liable to pay service tax? if yes, what next i should do? 2. Should i insist Job worker to get themself registered with Service Tax and charge Service Tax on their bills and i should book entir....
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....e bill amount inclusive of service tax as expense in my books of accounts? 3. Can i get refund of this Service Tax paid to In House Job Worker from Service Tax Department? If yes, please tell me the procedure. 4. I am not registered with Central Excise, can i file refund under Rule 5 of CENVAT Rules? if yes, please let me know the procedure. I shall be thankful, if anyone will advice me parawis....
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....e Regards Reply By Ashish Chaudhary: The Reply: 1. Sr. No. 30 of Mega Exemption Notification No. 25/2012-ST provides for exemption on intermediate production process undertaken by job worker in relation to textile processing. As the transaction in your case is covered by this entry, it is not liable to service tax and hence there is no liability under RC. 2. No need to ask as the service is ex....
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....empted. 3. Not Applicable 4. Regarding above transaction, no case of refund arise. For CENVAT credit availed on other inputs and input services, refund can be claimed under Rule 5 based on service tax registration number. Reply By Ashok Chopra: The Reply: Regarding Sr. 1, please advice me whether this exemption is applicable on intermediate production process undertaken by job worker in relat....
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....ion to manufacture of Wooden Furniture or not? Reply By Ashish Chaudhary: The Reply: (1) If excise duty is paid/payable by principal manufacturer on clearance of final product, then above exemption is available to job worker. (2) On the other hand, if the activity of job worker amounts to manufacture under the provision of Central Excise Act, then he will be covered by Negative list. (3) In ot....
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....her cases, liability would arise on job worker to charge ST. Reply By Ashok Chopra: The Reply: Dear Chaudhary Ji, We have exported final product at nil rate of excise duty under bond. what is the status? is exemption is available to Job Worker? If exemption is not available to Job Worker and process covered under manufacturing activities and Job Worker is not charging any excise duty or servic....
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....e tax on the bills raised by him. Can excise/service tax department put this responsibility on us as Job Worker is working in our premises? Reply By Ashish Chaudhary: The Reply: You can send facts of the case along with consolidated queries at my mail ID ashish at the rate of skpatodia.in. Reply By Ashish Chaudhary: The Reply: or contact me at 0141 4045450<br> Discussion Forum - Knowledge Sha....
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