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26 June 2013 wheather service tax applicble on the job workers or not?

Ganeshbabu K

Ganeshbabu K (Expert)
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26 June 2013 1)'No service tax is payable by job-workers on processes amounting to manufacture'

2)No service tax if covered in negitive list.

3)'Only job-work that does not amount to manufacture is taxable under service tax law'

Explanation:-

1)No service tax is payable on ‘any process amounting to manufacture or production of goods’ by your job-worker, as that activity falls under the negative list under Section 66D (f) of the Finance Act, 1944.

2)Also, S. No. 30 (c) of notification no.25/2012-ST dated June 20, 2012 exempts ‘carrying out any intermediate production process as job-work in relation to any goods on which appropriate duty is payable by the principal manufacturer’.

3)S. No. 30 also covers certain other activities of job-work.

Thanks & regards
Ganesh babu k

Ganeshbabu K

Ganeshbabu K (Expert)
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26 June 2013 Reference used above provided here for your reference

Notification No. 25/2012-Service Tax

http://www.servicetax.gov.in/notifications/notfns-2012/st25-2012.htm

Service tax negative list

http://img.labnol.org/di/service-tax-negative-list.pdf

Thanks & regards
Ganesh babu k

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