service tax on Job Work?

This query is : Resolved

Arijeet Das (Querist)
Follow

07 June 2010 Dear Experts,
Is Service Tax is leviable on Job Work???

If Yes, Please give me the references...

Thanking You

CA Vanesh Nadar

CA Vanesh Nadar (Expert)
Follow

07 June 2010 Yes. In would be liable to TDS u/s 194C of the ITA 1961, as the Job Work as Works Contract.

But, it would be more advisable to show the same as Wages to Employees, as that would not attact TDS upto the Slab.

Reagrds

VANESH

Arijeet Das

Arijeet Das (Querist)
Follow

07 June 2010 Dear expert,
I raise the question regarding Service Tax on Job Work rather than TDS on Job work.

Thanking You

Upgrade to CAclubindia Pro. Subscribe Now!

ADITYA

ADITYA (Expert)
Follow

07 June 2010 DEAR DAS,

SERVICE TAX IS APPLICABLE ON JOB WORK
HOWEVER THE PRINCIPAL WHO IS REGISTERED WITH EXCISE SENDS MATERIAL TO JOB WORKERS U/R 4(5)A IS EXEMPTED SERVICE UNDER SERVICE TAX

Arijeet Das

Arijeet Das (Querist)
Follow

07 June 2010 Dear Suren,
My Question is,
"We are doing job work of a ltd. company who is registered in Excise as well as Service Tax. Where as we are also registered under Excise & Service Tax."

Whether we should charge service tax on the above job work?

Thanking You

annapurna

annapurna (Expert)
Follow

08 June 2010 Basically if the job work amounts to manufacture on which excise duty is payable then service tax should not be levied on such job work. The above is discussed in Business Auxiliary service under Production or processing for or on behalf of the client