Does it attracts Service Tax

65(19)“business auxiliary service” means any service in relation to, —

Since you are processing or manufacturing the goods for the client, the same will be taxable under BAS. But, if the same process amounts to manufacture and excise duty is discharged thereon by principal manufacturer, then no service tax is leviable

Originally posted by : satish r
	We are cnc machining carrying on a orders from the parties, the parties supplies us the raw-material and also a specifications. We carry on the process by using the raw-material supplied by them and convert them in to a finished output as per their specification's provided. Here we are only doing the process which involves the labour. At final stage we raise a invoice only for labour charges which shown under KVAT-100 returns. Does this process attracts SERVICE TAX.... ????     Please help.

if the goods are received by you under nofification 214/84 or 57F(4) of central excise rules, then only u can be free from service tax, 

if not then u have two choices, 

1. pay service tax on the gross bill

2. pay excise duty on finish goods value, as the job work done by you amounts to manufacture.