Job work done for export oriented units


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This discussion clarifies whether job work performed for export-oriented units (EOUs) or agricultural industries that are 100% export-focused is exempt from service tax. It explains that job work related to manufacturing processes is generally exempt under Section 66D(f) of the Finance Act, 1994, provided appropriate duties are paid by the principal manufacturer and GST requirements are met, especially when materials are sent via challan.

24 May 2021 Respected Sir,
If any job work is done for export oriented units or any job is done for agricultural industries those industries which are 100% export oriented units, whether such job work is fully exempted from service tax

25 May 2021 Such job works are exempt from GST, if the material to job worker sent through challan and principal takes care of GST requirements.

25 May 2021 Raman Sir Good Morning
Actually my problem is related with service tax. Service tax was recovered and paid. A local job worker used to do some job work for exported oriented units ( Export Oriented Units were related with Agricultural Products). The job worker has received a notice from service tax department asking therein to pay service tax. Now the question arises whether any job work for export promotions was exempted from service tax ?



25 May 2021 Job work related to manufacturing is exempt from service tax. Job work will fall under manufacturing process.

As per Section 66D(f) of the Finance Act, 1994 any process amounting to manufacture or production of goods is not taxable service. ... As per the said Notification, job work in relation of any goods on which appropriate duty is payable by the principal manufacturer, is exempted.


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