A 100% EOU has lot of idle capacity. Can they take up job work for a non exporting DTA unit. If permissible, whether service tax is liable for the job work.
Reghunatha Karnavar P N (Others) (41 Points)
06 May 2014A 100% EOU has lot of idle capacity. Can they take up job work for a non exporting DTA unit. If permissible, whether service tax is liable for the job work.
JMS
(DY.MANAGER -COMMERCIAL)
(110 Points)
Replied 07 May 2014
An EOU unit can take the goods on job-work basis from DTA unit subject to fulfill of obligation that the finished goods after job-work would be directly exported from the premises of EOU. If the process amounts to manufacture activity, no service tax is liable.
Regards,
JMS
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