Job work

This query is : Resolved

SOHIL (Querist)
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13 February 2013 Dear Experts,

We have sent our material for the job work to X party. X party have done the job work and resent to us. X party have raised an invoice in favor of our company name and not charged any kind of service tax as party is also not registered in Service Tax.

My Query is

Whether we are responsible for the service tax payment if the job worker has not paid the service tax? If yes, then how much?
Whether we have to pay service tax with interest ?

Please advice Soon

Thanks

Sohil Patel

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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13 February 2013 if the activity you carry out amounts to manufacture, the same falls within the scope of the negative list of services, and so, you need not pay service tax.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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13 February 2013 You are not responsible for the payment of jobwork charge. Carrying out an intermediate production process as job work is exempt from service tax.

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