26 December 2013
As per my view job work that does not amount to manufacture(except nil duty or exempted goods) and the one which is not covered by Mega exemption notification is taxable under service tax . Job work is covered under works contract.And it the job worker is a individual,huf,firm an d the service reciver i.e. the principal is a body corporate,then reverse charge mechanism shall come into effect and service tax shall be paid in the ratio 50:50 by both.
As far as exemption is concerned regading job work,certain job works are exempted like the one in relation to agriculture,printing or textile processing,any process that amounts to manufacture.For detiled information please refer Serial No.30 of Mega Exemption Notification 25/2012 dated 20.06.2013
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