Hello All.
My client is engaged in labour job work of spark edm or wire cutting on the material supplied .material supplier is not the final manufactuer.Is my client laible to collect Ser.tax from the supplier/my clients customer.
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Service tax on job work
Replies (2)
in ur case
1) if material supplier is not manufacturer of excisable goods than....... we required to register under ST...
2) if material supplier is manufacture excisable goods than
a) we required to register only if process perform by us is not a manufacturing process..
b) otherwise we required to registered under ST.
I think if the material supplier is not the manufacturer of the "final product" then the job worker has to levy ST simply b'coz the activity of the job worker doesn't come under the definition of "manufacture"; it will just be an intermediate process resulting in WIP or say service. Further, what the material supplier does also do not fall under manufacturing activity. So, ST is leviable in both the cases. May be in case of material supplier, he has to levy it inder works contract from his vendor !!!! Pls correct it if I am wrong....
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