service tax on manufacturing process

This query is : Resolved

parimal (Querist)
Follow

06 January 2010 A manufacturing unit having excise registration does job work of manufacturing process of other excise registered unit.

Q.1 Is service tax applicable on job-work charges?

Ram Avtar Singh

Ram Avtar Singh (Expert)
Follow

06 January 2010 if product is excisable then no service tax on processing of excisable goods. otherwise service tax lible on job work.

vijay singhal

vijay singhal (Expert)
Follow

06 January 2010 agreeed

Dilip Darji

Dilip Darji (Expert)
Follow

07 January 2010 Dear Sir.
Under Noti.No.8/2005-ST Dt.01/03/05, full exemption has been granted taxable service (BAS)of production or processing of goods for, or on behalf of, the client for all service providers, subject to the condition (a) the goods must be produced or processsed using raw material, or semofinished goods, supplied by the client (supplier of raw material) (b) the goods produced or processsed by the job-worker are returned to the said client (c)the good so prpoduced must be used in or in relation to the manufacture of final goods classifiable under the fisrat schedule of tariff and prropriate amount of excise duty is paid on clearance of the goods from the the raw material supplier. If the final product manufactured by raw material supllier attracts Nil rate of duty or wholly exempted, this exemption is not available.
Meaning thereby that if the Raw Material supplier is paying central excise dyty than only exemption is available.
Regards.
DILIP DARJI.

SANJAY JAIN

SANJAY JAIN (Expert)
Follow

07 January 2010 No need to go even exemption notification, as if activity is amounts to manufacture, this does not cover in the defenition of BAS provided vide Section 65(105)(19).

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

N N V Satish

Pushkar Nagda

Subbiah S

Suneel Shah

AKCJ INFO

Subscribe Now

service tax on manufacturing process

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

CA Final

Senior Executive

Accountant

Manager- Finance and Compliance

GST CONSULTANT