Service tax on job work

This query is : Resolved 

09 June 2013 Dear Experts,

Our client is providing packing services to Agarbathi manufacturers. Is this service falls within the ambit of "taxable Service"?
Whether service tax is applicable? Any notification in this context?

10 June 2013 Packing services are exempted if it is done by a job-worker on behalf of the manufacturer of excisable commodities. The services provided by the party will be treated as "carrying out an intermediate production process" on behalf of the manufacturer. Please see Notn.25/2012 dt 20.06.12 sl no.30 (c).

Even if such service provider collects service tax in his bill, the entire service tax can be claimed as input by the manufacturers.



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