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LABOUR WORK

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(Querist)
11 April 2009 MY CLIENT IS DOING A JEWELLERY MANUFACTURING BUSINESS, HE MAKES JEWELLERY ON BARTER BASIS ARE THE JEWELLERY MANUFACTURING LABOUR COVERED IN SERVICE TAX ? SHOULD MY CLIENT RAISE THE LABOUR BILL WITH SERVICE TAX ?
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SIDDHARTHA SANKAR ROY

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SIDDHARTHA SANKAR ROY (Expert)
13 April 2009 If you actually mean to say that your client is manufacturing jewellery on job work basis, then from 16.06.2005 services provided in the manufacture of
(i) cut and polished diamonds and gem stones or plain and studded jewellery of gold and other precious metals,
(ii) falling under chapter 71 of the central excise tariff Act are exempted.
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