Service tax applicablity for Job Works

This query is : Resolved

A. Prithvi Surya (Querist)
Follow

22 June 2011 Dear Experts,

A Company takes fruits from supplier and process it in order to extract pulp from it. The Pulp is given back to the Supplier who supplied fruits. Can this job be exempt from Service tax under "Job works"??

Thanking you in advance.

Prithvi

U S Sharma

U S Sharma (Expert)
Follow

24 June 2011 if canning or packing in containers is not done, then it would be agro support and would not be taxed.

A. Prithvi Surya

A. Prithvi Surya (Querist)
Follow

09 July 2011 The company also does packaging...

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

24 July 2025 Regarding your query on service tax applicability for job work involving fruit processing and pulp extraction:

Key points:
The company takes fruits from the supplier, processes them to extract pulp, and returns the pulp to the supplier.

The question is whether this activity qualifies as job work and whether it is exempt from service tax.

Service Tax on Job Work in such cases:
Job work generally means processing or working on goods belonging to another person.

As per Service Tax law, job work is taxable unless specifically exempt.

Packaging or canning is considered a service activity and is generally taxable under "Manufacture of goods" service.

If only simple processing like extraction without packing/canning is done, it might fall under agro-processing support services, which could be exempt.

However, since packaging is involved, this activity is likely taxable under service tax.

Summary:
Activity Service Tax Applicability
Extracting pulp only (no packaging/canning) Likely exempt as agro-support
Extracting pulp + Packaging/canning Taxable under job work/manufacture of goods service

If the company charges separately for packaging, service tax would be applicable on that portion.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now