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Service tax on jobworker & commission paid to foreign agent

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This query is : Resolved

ARUN KUMAR PRASAD (Querist)

06 May 2012 please advice about service tax applicability with rule & section and share supporting documents.

my name is arun (9899978301) and working as an account manager in garment export industries.

case-1 Fabric issue to jobworker and jobworker return after cutting the fabric and stitching i.e in form of garment.

case-2. after receiving garment again issue to another jobworker for embroidery.

case-3. after receving embroided garment again issue to washing & finishing and packing and then shipped.

qusetion- an all above cases jobworker will liable for service tax and if liable then exporter can claim refund this service tax ?

case-4 would service tax apply if commission paid to foriegn agent ?
have any legally planning for this.

thanks

Arun Kumar Singh

Arun Kumar Singh (Expert)

11 August 2012 If process amounts to manufacture or production of goods, service tax will be exempt as per service tax negative list after that you are paying service tax on jobwork then rebate will be admissible.
service tax will not be applicable if export of service.

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