Excise or service tax implications

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2016 Hello Everyone, One of my client doing following activities for his customer. He is not registered under central excise law, however, He take the raw material from customer and send it to the another manufacturer who is registered under excise law. Plz help me out to find out implications of service tax or excise.
1.Customer(his customer's) provides material to the job worker( my client) for manufacturing of goods
2.Job worker send such material received from Customer to the Manufacturer
3.Manufacturer undertakes such necessary labour work for manufacturing of such goods and send back said goods to the job worker after raising invoice for said labour work
4.Further, Job worker receive such goods from manufacturer and send back to the ultimate Customer. Job worker may or may not undertake any further process on said goods. Job worker raises invoice on Ultimate Customer which includes charges of both manufacturer as well as job worker
5.Further, Customer receives goods from Job worker premises and He will discharge duty on said goods while clearing from his premises

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 July 2016 Only excise duty payable and service tax not applicable. Follow excise rules for sending the goods to job worker without payment of duty by job worker.

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2016 Which procedures sir, As per 214/86 or other ???

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2016 Please explain in detail why there is no service tax implication on said transactions

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 July 2016 Yes as per procedure 214/86.
This is a manufacturing activity exempted from service tax as per negative list.

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