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Service Tax on Job work

siddaramanna (FINANCE) (89 Points)

09 September 2007

Dear All

We are undertaking Job work from SSI & Medium Scale Units,public sector undertaking like HAL, BEML etc. Job work carried out to HAL are exmpted under Central Excise notification No.70/92CE. Items manufactured by HAL (Final Product) are supplied to defence are exempted from payment of Central Excise duty. Job work carried out by us are in the nature of manufacture as defined under section 2(F) of Central Excise Act.

Since the final product are cleared under NIL/ Exempted rate of Central Excise Duty are we liable to pay service tax on job work carried out by us as per Service Tax Notification No.8/2005 ST, Kindly Clarify

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12 Replies

(Guest)

is service tax is applicable on jobwork ? when we work inhoue of company manufacturing rubber products BY PROVIDING ONLY MANPOWER & USING COMPANY MATERIALS ON PIECE RATE BASIS . SO PLEASE SEND ME EMAIL OF THAT RULE

OFFICESELVA (Service) (515 Points)
Replied 27 July 2008

@ siddaramanna

As long as the process (job-work) amounts to manufacture and the goods are properly accounted vide job-work challans are other records you are eligible for Service Tax exemption. There is no need to worry about the exemptions availed by the said manufacturers.

(Guest)

Sir,

We are drawing of S.S.wire. Our unit is exciseable. We received material Wire & Rod for our one party for job work purpose agst. excise challan. The Party is also exciseable exporter unit.

The question is can we charge service tax agst. this material.

GOPALA KRISHNA TUMMA (Manager - Commercial) (38 Points)
Replied 04 August 2008

Originally posted by :siddaramanna
"	Dear All We are undertaking Job work from SSI & Medium Scale Units,public sector undertaking like HAL, BEML etc. Job work carried out to HAL are exmpted under Central Excise notification No.70/92CE. Items manufactured by HAL (Final Product) are supplied to defence are exempted from payment of Central Excise duty. Job work carried out by us are in the nature of manufacture as defined under section 2(F) of Central Excise Act. Since the final product are cleared under NIL/ Exempted rate of Central Excise Duty are we liable to pay service tax on job work carried out by us as per Service Tax Notification No.8/2005 ST, Kindly Clarify	"

You can avail exemption notification No.8/2005-ST where the cases the required raw materials are received and carried out some process and returned to principal supplier. The HAL is clearing the finished goods by availing conditional exemption notification but not Nil rate of excise duty under central excise tariff. Hence, you can avail exemption under notification no.8/2005

shanthanakumar (JR.EXECUTIVE) (22 Points)
Replied 31 October 2009

Dear Sir,

We are undertaking jobwork from 100% EOU unit. They are maufacture of Textile Machinery.

The details are given below:-

Transaction No.1

We are receiving raw material of Alu.Ingots

Nature of Process : Conversion into component, polishing, fettling

Transaction No.2

We are receiving textile M/c spares

Nature of Job : Polishing, deburring

Please let me know we have to pay Service Tax? if yes Notification number date, from which period to pay and they can avail service tax credit?

Kindly clarify

Thanks & Regards

R.S.SHANTHANAKUMAR

satheesha.p (asst. manager) (23 Points)
Replied 11 March 2010

Please clarify whether service tax is applicable for sub contract work, which is used in manufacture of final product.

shivaprasad (audit ) (38 Points)
Replied 01 September 2010

please clarify whether service tax payable on the job work charges.

x ltd is paying manufacturing goods and paying excised duty, it is also doing job work to y ltd. y ltd is an ssi unit. i.e ssi unit is not paying any excise duty.

periasamy (DGM Finance) (91 Points)
Replied 25 August 2011

Sir,

We are manufacturing components as job work to various boiler manufacturer. We are subcontracting some works relating to this process to outsiders. Whether the sub contractors are eligible from payment of service tax vide notification 8/2005, since the final product is excisable. Experts please clarify.

k.g.venugopal (proprietor) (21 Points)
Replied 24 January 2012

we doing manufactureing of excise goods and some part of our rawaterials are sent under 57 F (4) challan to job worker.and the job worker charging labour charges with service tax,We are taking the cenvet of service tax accordinly.Now the department dis allow the cenvet due to the job workers are exempted from service tax