Dear Pretham, No need to see details of Mr. X as service tax is charged irrespective of registration status of service receiver. Further, whether Mr. X will charge ST or not will depend on whether value of his services in preceding year was upto Rs. 10 lacs or not. If YES,Mr. Y will not charge ST on value of services provided upto Rs. 10 lac in current financial year.

Where the processing undertaken by the job worker does not amount to manufacture, the said job worker could be liable to service tax. Service tax shall be payable when reaches to threshold limit

Hi, According to service tax rules, 1.If Aggregate value of Taxable Services provided is **Less** than 10 lakh in Preceding Financial Year and in Current Financial year then No service tax to be paid. 2.If Aggregate value of Taxable Services provided is **Less** than 10 lakh in Preceding Financial Year and **More** than 10 lakh in Current Financial year then Service tax applicable after 10 lakh. 3.If Aggregate value of Taxable Services provided is **More** than 10 lakh in Preceding Financial Year and **Less** than 10 lakh in Current Financial year then Service tax applicable from Rs one ,No exemption available. In the above case it was given that Y has also not crossed thershold limit of 10 lacs so y does not need to charge service tax. Hope this helps you Thank You

Hai, Normally, the ‘person’ who provides the taxable service on receipt of service charges is responsible for paying the Service Tax to the Government (Sec.68 (1) of the Act). However, in the following situations, the receiver of the Services is responsible for the payment of Service tax : (i) Where taxable services are provided by foreign service providers with no establishment in India , the recipient of such services in India is liable to pay Service Tax,; (ii) For the services in relation to Insurance Auxiliary Service by an Insurance Agent , the Service Tax is to be paid by the Insurance Company (iii) For the taxable services provided by a Goods Transport Agency for transport of goods by road, the person who pays or is liable to pay freight is liable to pay Service Tax , if the consignor or consignee falls under any of the seven categories viz. (a) a factory (b) a company (c) a corporation (d) a society (e) a co-operative society (f) a registered dealer of excisable goods (g) a body corporate or a partnership firm (iv) For the taxable services provided by Mutual Fund Distributors in relation to distribution of Mutual Fund the Service Tax is to be paid by the Mutual Fund or the Asset Management Company receiving such service.

Liability to pay serice tax arises only if 1. If in the previous financial year the aggregate value of taxable services provided by you was less than Rs.10 lakh and in the present financial year the aggregate value of taxable services provided by you is also less than Rs.10 lakh. Then no need to pay service tax . 2. If in the previous financial year aggregate value of taxable services provided was less than 10 lakh but this year aggregate value of taxable services provided is more than 10 lakh them you start paying service tax after crossing the threshold of Rs 10 lakh. 3. If in the previous financial year aggregate value of taxable services provided was more than 10 lakh but this year aggregate value of taxable services provided is less than 10 lakh them you start paying service tax from rupee one. **Since Job worker Y has not crossed the threshold limit of 10 lakhs till now , so y should not charge service tax since liability to pay has not arise so why to collect.**

Please clearly mention whether X- was a firm/ company or Proprietorship & also Job work means what work....