we are manufacturer of steel structures, and also take up job work. while billing for job work should we charge excise duty or service tax for conversion of raw materials of client to finished product. please clarify.
Jagdish Aradhya (Officer - Accounts) (24 Points)
03 June 2012we are manufacturer of steel structures, and also take up job work. while billing for job work should we charge excise duty or service tax for conversion of raw materials of client to finished product. please clarify.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 18 July 2012
if the job work done by you amounts to manufacture , then ED payable on goods value + job work
if the job done by your does not qualify above, then Service tax applicable on job work amount only.