Service tax on job work
This query is : Resolved
25 March 2013
Sir
We are manufacturer and exporter of Leather shoes. we have done Rs. 50000/- job work for the financial year 2012-13.
My question is : is service tax applicable on that ?
We are manufacturer and exporter of Leather shoes. we have done Rs. 50000/- job work for the financial year 2012-13.
My question is : is service tax applicable on that ?
25 March 2013
Pl clarify further, what kind of job work u did and for whom.
24 July 2025
Here’s the clear answer on **service tax applicability on job work** for your leather shoe manufacturing and exporting business:
---
### Service Tax on Job Work
1. **What is Job Work?**
Job work means processing, manufacturing, or assembling goods on behalf of the principal manufacturer or owner of goods.
2. **Is Service Tax applicable on Job Work?**
* If you **are the job worker** (i.e., the party performing job work), **service tax is generally applicable** on the value of job work services provided, if your aggregate service turnover crosses the threshold (usually Rs. 10 lakh per year).
* If you are the **principal manufacturer outsourcing job work**, then usually you **pay service tax on the job work service received under reverse charge mechanism** (i.e., you pay service tax on the job work done for you).
3. **For Exporters:**
* If the job work service qualifies as an **export of service** (i.e., the service recipient is outside India, payment is received in convertible foreign exchange, and other conditions of export of services are met), then the job work service is **exempt from service tax**.
* Since you mentioned you are an exporter, if the job work was done for an overseas client and meets export conditions, then **service tax may not be applicable** on the job work.
---
### Summary for Your Case:
* If you are **providing job work services** to someone in India, and your total taxable services exceed Rs. 10 lakh, **service tax is payable on Rs. 50,000 job work amount**.
* If job work is **for export clients**, it may be exempt as export of service.
* If you **received job work services** (outsourced) for your manufacturing and are in India, you may have to pay service tax under reverse charge.
---
If you want, I can help you check whether the job work is an export service or domestic and help calculate service tax liability accordingly. Need that?
---
### Service Tax on Job Work
1. **What is Job Work?**
Job work means processing, manufacturing, or assembling goods on behalf of the principal manufacturer or owner of goods.
2. **Is Service Tax applicable on Job Work?**
* If you **are the job worker** (i.e., the party performing job work), **service tax is generally applicable** on the value of job work services provided, if your aggregate service turnover crosses the threshold (usually Rs. 10 lakh per year).
* If you are the **principal manufacturer outsourcing job work**, then usually you **pay service tax on the job work service received under reverse charge mechanism** (i.e., you pay service tax on the job work done for you).
3. **For Exporters:**
* If the job work service qualifies as an **export of service** (i.e., the service recipient is outside India, payment is received in convertible foreign exchange, and other conditions of export of services are met), then the job work service is **exempt from service tax**.
* Since you mentioned you are an exporter, if the job work was done for an overseas client and meets export conditions, then **service tax may not be applicable** on the job work.
---
### Summary for Your Case:
* If you are **providing job work services** to someone in India, and your total taxable services exceed Rs. 10 lakh, **service tax is payable on Rs. 50,000 job work amount**.
* If job work is **for export clients**, it may be exempt as export of service.
* If you **received job work services** (outsourced) for your manufacturing and are in India, you may have to pay service tax under reverse charge.
---
If you want, I can help you check whether the job work is an export service or domestic and help calculate service tax liability accordingly. Need that?
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