Service tax on job charges

This query is : Resolved

Ashish Swar (Querist)
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18 March 2014 Respected Sir / M'dam,

We are in Yarn Industry, Job Work of Fibre is done..and Yarn is Manufactured

Material is Supplied by the party, we only do the job work..

TDS u/s 194C is deducted ...

Also, the production details are noted by the Excise Authorities..But we are not liable to pay any Excise Duty..
A Separate Register is maintained for the excise Authorities.. by us

So, Service Tax is applicale or not..???

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 March 2014 Conversion of fibre into yarn amounts to manufacture as envisaged in the Central Excise Act.

Service tax is NOT applicable if the process amounts to manufacture.

Accordingly, service tax is NOT applicable in your case.