Service Tax on Job Work

This query is : Resolved 

18 March 2010 A non SSI ingot manufacturer is also engaged in job work for a Steel Rolling factory by manufacturing ingots for them out of the Raw materials supplied by the Steel rolling factory. My questions are,

1. As ingots are dutiable goods, who should pay duty? The Job worker or the principal?

2. How Notification 8/2005 - ST will applicable?

3. Under what documents (duty paying) the goods will move from job worker to principal?

4. Whether G.T.A has to be paid.

5. Can there be two Service Tax for a job work i.e. G.T.A and Business Auxiliary Service?

19 March 2010 When the job worker is removing the goods from his place on the value of labour charges collected / being collectiable he should pay excise duty.

Since already you are paying excise duty you need not pay service tax on the same.

This becomes a part of manufacturing activity therefore service tax is not applicable.

19 March 2010 Service tax is not applicable


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