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Service tax on jobwork

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Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2013 X LTD. IS PRINCIPLE MANUFACTURER AND SUPPLY EXCISABLE GOODS TO Y LTD. Y LTD. DOES THE JOB WORK ON IT AND PROVIDE IT THE X LTD. FOR SALE. WHILE DOING THE JOB WORK Y LTD. USE THE MATERIAL AND LABOUR.AND ON FINAL PRODUCT X LTD. PAYS EXCISE DUTY.

WHETHER SERVICE TAX PAYABLE BY Y LTD ? IF YES UNDER WHICH HEAD ?

WHAT IS IMPLICATION IF NO EXCISE DUTY IS PAYABLE ON FINAL PRODUCT ?

CA Vikas Acharya

CA Vikas Acharya (Expert)
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26 April 2013 if y is providing services which are manufacture then no service tax as PROCESS AMOUNT TO MANUFACTURE (as per central excise) are covered in negative list.
if the process of Y is not manufacture, then come to mega exemption 25/2012, where in entry no. 30 given that if the principal pays the duty on his behalf no service tax, otherwise y has to pay the same.

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