16 August 2013
Dear All, can anyone suggest me on the following matter.
We sent material to our jobworker for further processing. the job worker complete the processing by employing 2-3 contractor. Afer completion of the processing the goods are returned back to us and we claer the goods after payment of excise duty.
My question is that whether the payment made the job worker to contractor for wages is liable to pay service tax? in case the job worker is liable to pay service tax then is it possible for the job worker to claim the same service tax liability from the principal manufacture?
16 August 2013
No service tax is payable either by you or by the job-worker
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case