26 January 2009
" We are doing job work of electroplating and registered under Service Tax. We are charging service tax to all customers, Excise goods manufacturers and non excise goods manufacturers. If Excise goods manufacturers pay us service tax, do they get refund of the service tax paid to us? " If excise goods manufacturers are exempted from paying service tax as they are paing excise on the removal of their final product than we are restricted to collect the tax at any cost ? or we can charge the service tax ane pay it to government.? In above case if we have charged the service tax and paid it regulerly to govt. than the manufacturers are eligible for servic tax credit ? "
27 January 2009
As per service tax law, if the job work is a part of manufacturing or processing of goods which are excisable and there is levy of excise duty, then such job work charges are not liable to service tax. In case the service tax is paid on such charges then in that case also the manufacturers is eligible to service tax credit.
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