SERVICE TAX IS APPLICABLE ON JOB WORK HOWEVER THE PRINCIPAL WHO IS REGISTERED WITH EXCISE SENDS MATERIAL TO JOB WORKERS U/R 4(5)A IS EXEMPTED SERVICE UNDER SERVICE TAX
07 June 2010
Dear Suren, My Question is, "We are doing job work of a ltd. company who is registered in Excise as well as Service Tax. Where as we are also registered under Excise & Service Tax."
Whether we should charge service tax on the above job work?
08 June 2010
Basically if the job work amounts to manufacture on which excise duty is payable then service tax should not be levied on such job work. The above is discussed in Business Auxiliary service under Production or processing for or on behalf of the client
CAclubindia
