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job work

Anshul Agarwal (Student) (170 Points)

24 September 2009

plz guide me whether an entity can charge service tax on job work done, even if the job work done is on excisable goods and excise duty is paid by the principal manuftures

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Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14497 Points)
Replied 24 September 2009

any jobworker can charge Service Tax on job work but proof of Exciseable goods to be given by principale to jobwoker. Undertaking given to Excise Range is the best proof for that.

if principle not giving any proof for none deduction of service tax then service tax libility arise on job worker.

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ramesh (Sr.Executive Accounts) (92 Points)
Replied 24 September 2009

Dear Mr. Anshul

1.Any activity that amounts to manufacture within the section 2(f) of the Central Excise Act,1944 are not covered within the ambit of the service tax under the Business Auxiliary Services.

means any activity of production or processing of goods on behalf of the client that amounts to manufacture under the said rule is not liable to service tax.

2. Exemption is also available - see notification No. 8/2005-S.T dated 01.3.2005

Thanks,

Ramesh