Partner
192 Points
Joined March 2013
If the activity of job work undertaken amounts to manufacture as per Central Excise Act, 1944, then no Service Tax is payable.
If the activity of job work undertaken does not amount to manufacture as per Central Excise Act, 1944, then no Service Tax is payable, if the principal manufacturer is paying duty on such job work goods.
If the activity of job work undertaken does not amount to manufacture as per Central Excise Act, 1944, and if the principal manufacturer is not paying duty on such job work goods, due to exemption of final product, etc, then Service Tax is payable.