Service Tax on Job work

Dear Friends,

We are the 100% EOU Company, Manufacturing Engineering goods for Petro-chemical sectors. For One of our export order, we are planning to engage a Job work Contractor on the following terms :

01. The Jobworker has to mobilise required machinery and Labour relevant to the Job and execution must be carried out in our 100% EOU premisies.

02. We issue the required Raw material, Space, Power to the Jobworker at free of cost.

03. The Jobworker has to process the Raw material issued as per our specification and to keep ready with the packing for shipment.

04. The payment to the jobworker will be made based on the Metric Tonnes manufacturered and shipped from our Premises.

Our Query : 01. Whether this jobwork is subject to service tax.

02. If so, can we get exempted from paying Service Tax as a 100% EOU. or If paid can we claim back

the service tax paid by us being the goods are exported.

03. Should we have to inform Excise Department on the engagement of this Contractor.

Can any one please give your comments....

Suresh

Originally posted by : Suresh Kumar
	Dear Friends, We are the 100% EOU Company, Manufacturing Engineering goods for Petro-chemical sectors. For One of our export order, we are planning to engage a Job work Contractor on the following terms : 01. The Jobworker has to mobilise required machinery and Labour relevant to the Job and execution must be carried out in our 100% EOU premisies. 02. We issue the required Raw material, Space, Power to the Jobworker at free of cost. 03. The Jobworker has to process the Raw material issued as per our specification and to keep ready with the packing for shipment. 04. The payment to the jobworker will be made based on the Metric Tonnes manufacturered and shipped from our Premises. Our Query : 01. Whether this jobwork is subject to service tax. 02. If so, can we get exempted from paying Service Tax as a 100% EOU. or If paid can we claim back the service tax paid by us being the goods are exported. 03. Should we have to inform Excise Department on the engagement of this Contractor.