Excisable unit carrying out job work for non excisable unit

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sanjeev abrol (Querist)

18 December 2008 If an excisable unit (x) carries out job work for exempted unit (y)on the material supplied by y to x. Whether x would be liable to charge excise duty or service tax on job work. If excise duty is chargable, whether the transaction value would be material cost supplied by y plus the job work carried out by x. If service tax is applicable what would be transaction value.

S. Banerjee

S. Banerjee (Expert)

18 December 2008 Neither Central Excise nor Service Tax is applicable to X as a Job Worker.
Thanks, S. Banerjee

sanjeev abrol

sanjeev abrol (Querist)

19 December 2008 If an excisable unit (x) carries out job work for exempted unit (y)on the material supplied by y to x. Whether x would be liable to charge excise duty or service tax on job work. If excise duty is chargable, whether the transaction value would be material cost supplied by y plus the job work carried out by x. If service tax is applicable what would be transaction value

sanjeev abrol

sanjeev abrol (Querist)

19 December 2008 I think it needs debate...Any expert pls help

Sreenath

Sreenath (Expert)

26 December 2008 This transaction will come under service tax not under the excise.

Service Tax needs to be calculated on job work amount not in material cost.

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