Service tax

This query is : Resolved 

14 December 2012 One of our Company is a Manufacturing Unit (Palion Manufacturing Co. Ltd.). And it gives a Job Work Order to a Non Excisable unit(i.e. Himanshu Mgf. Co. Pvt. Ltd.) to produce our product. When Himanshu Mgf. Co. Pvt. Ltd. Raised a bill in the name of Palion Manufacturing Co. Ltd., But there is no Service Tax or Work Conract Tax. I want to know can a non excisable unit charge service tax from Excisable Unit. if yes/No please give reason.


14 December 2012 Any goods on which appropriate duty is payable by the principal manufacturer is not subject to service tax.
Accordingly, the job worker should not charge service tax on the bill.

14 December 2012 Right Amit and it is as per Notification no. 8/2005- service tax and further appropriate duty of excise shall not include 'NIL rate of duty or duty of excise wholly exempt.




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