Service tax on jobworker & commission paid to foreign agent

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.


Arun Kumar Singh (Expert)

Click to Talk 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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