I need someone valuable advise!! X-Principle Manufacturer Y-Jobworker X send material to Y for Job work, X is not registered in Central excise and service tax because of threshold limit, Y is registered in excise & service tax both then should y charge service tax or not on jobwork bill while y has also not crossed thershold limit of 10 lacs
Dear Preetham, Please note there is no any requirement to collect Service Tax on Services provided if the services provided seems to exceed a total of Rs. 10Lac during the FY. Here the services so provided are less than 10Lacs. Hence there is no meed to charge Service Tax. If the provider do so then he is required to pay the tax so collected to the Account of Govt. Apart from that in the above case the provisions of TDs also attracts under Section 194C. Feel free to ask questions about INDIRECT TAX here even on mail garglokesh92@yahoo.in On FB - fb.com/garglokesh92 Regards ! Lokesh Garg !