Service tax on job work

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Querist : Anonymous

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Querist : Anonymous (Querist)
04 September 2011 my client manufactures the shoe uppers and complete footwear on job work basis, please guide us about the applicability of service tax on job work charges if-
1) if the show uppers were used in manufacturing of footwear which are below MRP250/-
2) if MRP is more than 250 and excise is applicale.
3) if shoe uppers and footwear are meant for export and not for domestic sales?

regards
CA Nitin Mittal

07 September 2011 Any manufacturing activity attracts Excise Duty as per the applicability laid down in the Excise Rules and Service Tax in not applicable for manufacturing activity.

You have to go through care fully whether your activity is under definition of manufacturing under Excise Law.

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 September 2011 but they are manufacturing on job work basis that is the whole material is being supplied by principal....


10 September 2011 even a job worker would be liable to pay excise duty on goods manufactured by him on job works basis, in absence of proper documents issued by the principal under the excise rules , ( 214/86 or cenvat credit rules 2004)



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