We are doing Job Work for one company who says since they are paying excise duty on final product, we should not charge service tax for the job work we provided to them.
what is the document we should collect to ensure that the other company is paying excise duty on the final product ?
If the process carried on by the job worker is amounting to manufacture and the manufacturer of the final product is paying excise duty, service tax is not applicable to the job worker. The goods to be processed by the job worker should have been sent by the manufacturer of final product under the cover of a challan under central excise rules.
Notification 8/2005 of Service Tax
Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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