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S.tax for job work

niloy sanyal (account manager) (777 Points)

22 February 2016

We are plastic Manufacturing Comapny in India. As per Party requirement we are doing Sale & Jobwork. Noew This Year our Job Work Cross Rs. 10 Lac , So Our Question is It is compulsary or Exempt for SERVICE TAX Number.

Please Note That We Are doing JOB WORK only EXCISABLE Party, They are provied Annaxure II

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Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 23 February 2016

You may not be liable due to 2 reasons:

a. If you are doing job work for excisable units and they are provding you the declaration that they wouldbe paying the duty on the products manufactured by them, you are exempted under Not 25/12 without any limit.

b. If your activity is manufacture ( conversion of raw material inot products) then as per the negative list it is not a service. NO ED as coming under job work Not 214/86.