Whether job work under cenvat provisions is exempt from service tax ??
CA Aspirant! (CA Fresher) (112 Points)
20 January 2011Whether job work under cenvat provisions is exempt from service tax ??
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 20 January 2011
if the final products are cleared on payment of duty by the principal manufacturer who send goods for job work, then service tax is not applicable,
but if final products are not duty paid or exempted, then service tax is applicable.
Jeevesh Mehta
(Advocate- Corporate Commercial & Indirect Tax Advisory)
(861 Points)
Replied 27 January 2011
Mr sharma please note ...
If the job work process amounts to manufacturer then no service tax is applicable.
But if the process does not amounts to manufacture then service tax is applicable.
Regards
Rajeev Verma
(Advocate & Consultant)
(30 Points)
Replied 30 January 2011
Your Question is " Whether job work under cenvat provisions is exempt from service tax ??"
By the question i understand that if goods have been sent by manufacturer supplier under rule 4(5)(a) of Cenvat Credit rules 2004 under Challan then can the job worker be exempt from servcie tax?
The reply is YES.
Rajeev Verma