Cess
mukesh mehta
(Querist) 23 January 2012
This query is : Resolved
one of my clients whose workshop is located in MIDC Rabale, is engaged in doing job work for vehicles body building. the material i.e. steel plates is send by the company and my client cuts, welds and sends it back. my client charges labour charges. however NMMC has levied Cess duty on the Value of material i.e. value of steel plates. if the cess is charged on the labour charges received it is fesaible for my client to pay the taxes. i wanted to know what are the applicable law for Cess input tax.
Raj Kumar Makkad
(Expert) 23 January 2012
No cess duty can be charged from your client as he is doing only labour job. He is neither purchasing the sheets nor is selling the same by adding its value. The whole responsibility rests with the company who has engaged your client on labour base.
