Job work of gold ornaments

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This query is : Resolved

MANISH BHEDA (Querist)

07 June 2012 We are a Pvt Ltd Company making Gold ornaments for Retailers on pure Labour / Job Work basis. We receive gold bars from our customers and we make gold ornaments for our customers.

Whether Service Tax is applicable on Labour Charge / Job Work in making Gold & Diamond Studed ornaments.

CA NIKHIL OZA

CA NIKHIL OZA (Expert)

08 June 2012 yes service tax is applicable on such service..

rajula gurva reddy

rajula gurva reddy (Expert)

09 June 2012 In the present case, the raw material is gold bars and finished goods are ornaments. Thus new product has emerged after undertaking the jobwork process. There is change in the classification from Gold bar to ornaments. When the process amounts to manufacture, there is no Service TAx liability on jobwork charges.

MANISH BHEDA

MANISH BHEDA (Querist)

12 June 2012 With both the above replies I am still not clear. Nikhil can you send me any Notification / Circular on the above matter.

CA NIKHIL OZA

CA NIKHIL OZA (Expert)

13 June 2012 No as such notification/circular has been there ..i agree with mr. reddy only in a case where jush job worker does labour work n dont add/suppy any material to it..

CA NIKHIL OZA

CA NIKHIL OZA (Expert)

13 June 2012 No as such notification/circular has been there ..i agree with mr. reddy only in a case where jush job worker does labour work n dont add/suppy any material to it..

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