Rajeev Bansal (Partner) (25 Points)
28 August 2009Dear Professional Colleagues
IN FINANCE ACT 2009, THERE IS ONE AMENDMENT FOR JOB WORK UNITS TO BRING THEM UNDER SERVICE TAX. MY CLIENT HAS A UNIT IN H.P.WHICH IS EXEMPTED FROM EXCISED. HE IS DOING JOB WORK THERE. ALTHOUGH THE GOODS ARE EXCISABLE, SINCE UNIT IS EXEMPT FROM EXCISE HE DOES NOT PAY ANY DUTY ON JOB CHARGES. ALSO HE DOES NOT CHARGE ANY VAT ON JOB CHARGES. PL. ADVICE WHETHER HE IS LIABLE FOR SERVICE TAX UNDER THE NEW AMENDED PROVISIONS.
THANKS & REGARDS
C.A. RAJEEV BANSAL
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 28 August 2009
So long the goods processed are excisable goods and the process amounts to manufacture, ST is not applicable
shrikant
(self )
(65 Points)
Replied 28 August 2009
if the process under job work does not amount to manufacture , then if the goods resulting from job work is further used in the manufacture of excisable goods which suffers excise duty, then there is exemption from service tax for such jobwork
please check exemption notification issued in this regard. anybody who can recollect instantly the notif. no. help Mr.Rajiv
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 29 August 2009
Not no 8/2005 dated 01.03.2005
Samir Naik
(Service)
(23 Points)
Replied 21 June 2010
Dear Pavanji,
Thanks for the above info. This was exactly what I was actually searching today. However my question is what about S.T. on job work prior to 01/3/2005. Will it be taxable? Please advice.
Thanks - Samir Naik
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