Servive tax on processing charges

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My client is engaged in the business of manufacturing silver foil from silver bricks. It uses such foil captively.
It also processes silver bricks and converts it into foil for other customers on job work basis.

Q. Will Job Work charges being billed to outside parties be chargeable to service Tax?

If yes please also tell under what heading will this be taxable.

 

Replies (3)

yes, under labour charges subject to annual limit of service tax applicability

Mr Dave,

Can u please define labour charges more accurately as i could not find them in the Act

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