Service Tax on Manufactured Job work

Dear Professional Colleagues

IN FINANCE ACT 2009, THERE IS ONE AMENDMENT FOR JOB WORK UNITS TO BRING THEM UNDER SERVICE TAX. MY CLIENT HAS A UNIT IN H.P.WHICH IS EXEMPTED FROM EXCISED.  HE IS DOING JOB WORK THERE. ALTHOUGH THE GOODS ARE EXCISABLE, SINCE UNIT IS EXEMPT FROM EXCISE HE DOES NOT PAY ANY DUTY ON JOB CHARGES. ALSO HE DOES NOT CHARGE ANY VAT ON JOB CHARGES. PL. ADVICE WHETHER HE IS LIABLE FOR SERVICE TAX UNDER THE NEW AMENDED PROVISIONS.

THANKS & REGARDS

C.A. RAJEEV BANSAL

Replies (4)

So long the goods processed are excisable goods and the process amounts to manufacture, ST is not applicable

if the process under job work does not amount to manufacture , then if the goods resulting from job work is further used in the manufacture of excisable goods which suffers excise duty, then there is exemption from service tax for such jobwork 

please check exemption notification issued in this regard. anybody who can recollect instantly the notif. no. help Mr.Rajiv

Not no 8/2005 dated 01.03.2005


Dear Pavanji,

Thanks for the above info. This was exactly what I was actually searching today. However my question is what about S.T. on job work prior to 01/3/2005. Will it be taxable? Please advice.

 

Thanks - Samir Naik

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