Service Tax applicable on Labour Charges

This query is : Resolved 

11 September 2010 we are manufacturing unit of toothbrushes liable for excise duty on the goods cleared we are suppling raw materials to a another unit to convert our goods on labour charge basis under challan 4 (5) a we would like to know whether the said unit i.e. the job worker is liable to charge service tax from us.

11 September 2010 Since you are paying the Excise duty on your final product then the job worker can claim the exemption under Notification 8/2005-ST.



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