Service tax on job work and supply of man power

This query is : Resolved

Hitesh Chhajer (Querist)
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09 February 2015 Respected Readers
My query is as follow:
A mustard oil manufacturing company gives its raw material (mustard seeds) on job work to another company or firm(same kind of manufacturing unit) who return in finished goods(mustard oil). No excise duty applicable on mustard oil manufacturing units due to agro based industries.Manufacturing is in negetive list. so my questions are:
1. Job worker company make it works complete by contractor, so service of contractor is in fall of supply of labour man power or job work ? will contractor need to charge service tax in his bill or RCM apply?

2. If we want to take another firm/unit on rent then what could be service tax liability?

3.Contractor work nature- Job work or supply of man power?

4. Any escapement from service tax liabilities so both companies and contractor need not to take burden of service tax.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 February 2015 1. It will fall under job work. Being manufacturing activity service tax not payable.
2. If you take another unit as rent still it will be manufacturing activity.
3 It is a job work.
4. No service tax payable.

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