Ours is closely held limited company. We are manufacturing the granite monuments and slabs and export them to foreign countries. Our manufacturing unit is 100% Export Oriented unit. We have a one more division of Quarry and Trading Division. This is not a 100 % EOU. But we are producing granites blocks in various raising quarries under the raising agreement with them. Out of producing the granite blocks some quantities sold to foreign companies as raw blocks. Some quantities are taken to our personal manufacturing use in 100 % EOU Division. Quarry owners billed for our company for example Rs.15000 per cubic Metre (Bill for Purchase) Credit Note for Rs.12000 (For Raising Work). During the Service Tax Audit, audit peoples told that our company is liable to pay service tax for Rs.12,000/- on account of service providing to quarry owners. Please Clarify the same. It is most urgent.
Regards
S Mohan
Accountant
