Service tax on job work

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M N D (Querist)
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31 August 2012 Dear Sir,
We are manufacturer of transformer and supplying raw material (Ms plate) to job worker for manufacturing of tank(semi finished).He is using consummbles(electrodes),man power & electricity of his own in his plant. As we are in ED exemption Zone (Uttarakhand)& our job worker also in uttarakhand but he does not have ED exemption, I want to know weather job work attract service tax or VAT on it.

CA Suresh Jain

CA Suresh Jain (Expert)
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02 September 2012 As per section 66D (f)of Service Tax law the following is in negative list :-
(f) any process amounting to manufacture or production of goods;

Since, fabrication of tank is nothing but a process amounting to manufacture no service tax is payable.

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