In case of garment job work

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Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2012 Dear Sir,

PLEASE CONFIRM ME SERVICE TAX APPLICABLE OR NOT IN JOB WORK CASE?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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12 February 2012 Job works attract service taxable unless not covered under sec.2(f) of Excise act

accordingly Section 2(f) of the Excise act, as follows

2(f) “manufacture” includes any process,-
(i) incidental or ancillary to the completion of the manufactured product;
(ii) which is specified in relation to any goods in the section or Chapter Notes
of the first schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as
amounting to manufacture; or
(iii) which in relation to the goods specified in the Third Schedule, involves
packing or repacking of such goods in a unit container or labeling re-labelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer,

and the word “manufacture” shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account;