Opinion for job work matter

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2012 Dear Sirs

We are manufacturer of M.S Pipes of all diameter & now we have 1 order in our company, in which party want to split the P.O in two portions which is as follows.

1/ Party will give us P.O, only for Bare Pipes. (M.S Pipes)
2/ Same Party want to give one another order for coating work on Bare Pipes in which purchaser party will provide all the coating material for coating on their Bare Pipes (Goods of 1st P.O) & we have to engage only Man Power for this particular Job Work.(Coating on Bare Pipes)

Now the question is how we will raised the Invoice to party when goods will be ready & what type of Tax we have to charge (ED or Service Tax) in above said situation.

You are requested to give your valuable opinion & Advice.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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10 August 2012 Excise duty will be applicable on this manufacturing activity. Service tax will be exempt if process amounts to manufacture or production of goods.

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