Excise/service tax on mfg/jobwork of diamond jewelleery...?

CA Sandip D Mayani (auditor) (38 Points)

17 February 2015  

Hi,   I am thinking of starting a diamond and gold jewelry shop. However, initially to reduce overheads, i am planning on outsourcing manufacturing of the jewelry. I will provide designs and raw materials to the manufacturer. They will manufacture the finished goods and return it to me. In turn, I will pay them for the manufacturing service they render. Would service tax be applicable in this situation and who would be liable? Also, since I am not myself manufacturing the finished product, who would be liable for the excise duty, me or the manufacturer?

Myself (Client Behalf): whether im mfg & liable for excise or jobwork by thirdparty and lib to pay ST if bill raised by job worker....or ITS TOTALLY EXEMPT FROM xcise/service tax and only IM liable for TDS u/s 194C...

APPRECIATE YR QUICK RESPONSE...

Thanks in advance for the help. 
CA Sandip