Service tax applicablity for Job Works
This query is : Resolved
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
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
24 June 2011
if canning or packing in containers is not done, then it would be agro support and would not be taxed.
09 July 2011
The company also does packaging...
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.
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting our of sec 44AD
- LC charges in relation to Asset purchased should be Capitalised ?
- Multiple trade mark
- Transporter Declaration form
- Regarding TDS Applicability For Director Remuneration
- Regarding appeal to GSTAT
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Form 121 & TDS deduction
- Value of property in capital gain
- Copyright software
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
