Service Tax on Job work

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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 

Replies (12)

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

@ 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.


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.

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

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

 

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

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.        

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.

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

Whether Service tax on labour charges is applicable, please guide.

If you looking at Labour charges yes, but you will need to explain the context for some reply and give proper guidance.

Dear sir,
Please clarify whether service tax is applicable for subcontract work, which is used in sosaties constitution work


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