Service tax on job work
This query is : Resolved
Guest
Guest
(Querist)
18 December 2013
Please solve 3 quaries: -
A ltd provides material to Company B to produce finished goods for them. Company B provides job work using their own material too. It amount to manufacture.
Is Company B liable for service tax :
1) When Company A liable for Excise Duty.
2) When Company A not liable for Excise Duty.
3) Will it make any difference if, B is not a company but a partnership firm (Not LLP)
Please help,,
A ltd provides material to Company B to produce finished goods for them. Company B provides job work using their own material too. It amount to manufacture.
Is Company B liable for service tax :
1) When Company A liable for Excise Duty.
2) When Company A not liable for Excise Duty.
3) Will it make any difference if, B is not a company but a partnership firm (Not LLP)
Please help,,
Annu Agarwal
(Expert)
20 December 2013
The first question is whethet service tax is levieable on the job work done by Company B.
Case-1 when Co A( the principal manufacturer) pays excise duty
Inthis case,Company B is not liable to pay service tax.
Reference is entry no 30(c) of the Notification 25/2012 dated 20.06.2012
Case-2 Where Co A is ot liable to pay excise duty.that is it produces exempted goods.
In this case also Comapny B is not liable to pay service tax
Reference"Service tax is not levied on any process amounting to manufacture or production of goods.Negative list Section 66D(f)
Case3:It does not make any difference if company B is a Co or a Partnership.
Case-1 when Co A( the principal manufacturer) pays excise duty
Inthis case,Company B is not liable to pay service tax.
Reference is entry no 30(c) of the Notification 25/2012 dated 20.06.2012
Case-2 Where Co A is ot liable to pay excise duty.that is it produces exempted goods.
In this case also Comapny B is not liable to pay service tax
Reference"Service tax is not levied on any process amounting to manufacture or production of goods.Negative list Section 66D(f)
Case3:It does not make any difference if company B is a Co or a Partnership.
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