Excisable unit carrying out job work for non excisable unit

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sanjeev abrol (Querist)
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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)
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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)
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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)
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19 December 2008 I think it needs debate...Any expert pls help

Sreenath

Sreenath (Expert)
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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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