Which tax on jobwork

A manufacturing company undertaking jobwork process of converting Plastic grannuals to preform (i.e. semi finished item) and charges jobwork/processing charges for convertion. Jobworker receive raw material from party by Excise Jobwork Challan 4(5)a.

Which tax is aplicable on Jobwork Charges, Excise Duty or Service Tax for Jobworker Invoicing

 

Replies (2)
for jobwork....
1. excise: as the item remains semi finished after job work then you are not responsible for excise. ultimate mfg will pay.
2. service tax : job work is exempted under mega exemption
one more thing... take cenvat credit if the finished item is taxable in hands of that ultimate mfg.

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