service tax on jobwork from exciseable/non-exciseable units

Queries 723 views 3 replies

NITIN AGGARWAL

ENGINEER

36 Points Joined October 2009

Dear All helping members of CA clubinida,

my firm is manufacturing unit which do jobworks of forgings for auto parts, tractor parts, etc.

we receive raw material i.e. steel bars / steel cut pieces from our customers / parties and do the manufacturing process (JOBWORK) of rough steel forgings by using our raw materials like furnace oil, etc and then return back to them.

our customers are both exciseable as well as non-exciseable.

Does we come under service tax category? Are we liable to pay the service tax or not in both cases(exciseable / non-exciseable)?

kindly clear my doubts.

regards

Nitin Aggarwal.

Replies (3)

T.S.CHANDRASEKARAN

CHARTERED ACCOUNTANT

60 Points Joined April 2009

Originally posted by :NITIN AGGARWAL

Job work for excisable goods at your customer end -No Service Tax under Notification 8/2005.For this you get a returnable challan (similar to 57F(4) ) and a letter from your customer that the end product is dutiable and customer will pay the same The returnable challan shall get closed for which you have to send the goods and scrap and have proper records.

Job work for non excisable goods at your customer end will attract service tax if your services exceed Rs 10.00L

Rajesh Kumar

Advocate- Tax

7806 Points Joined December 2008

I analysed the situation in this article, it may be helpfulhttps://www.hotfrog.in/Companies/RAJESH-KUMAR-ASSOCIATES/Cenvat-Credit-on-Exempted-Job-Work-3874

NITIN AGGARWAL

ENGINEER

36 Points Joined October 2009

Originally posted by :Rajesh Kumar
"	I analysed the situation in this article, it may be helpfulhttps://www.hotfrog.in/Companies/RAJESH-KUMAR-ASSOCIATES/Cenvat-Credit-on-Exempted-Job-Work-3874	"

Dear Rajesh Ji,

I was unable to open the link so kindly clear the link or cutNpaste the matter here.

thanks & regards

Nitin