Service tax exemption on job work: whether job workers must claim exemption and whether principals may take credit. Whether job workers must compulsorily avail the service tax exemption under Notification No.25/2012 ST and whether service tax charged by job workers is admissible as cenvat credit to the principal manufacturer were discussed. Trade argued the exemption is conditional and optional and that service tax paid should be creditable; field officers maintained the exemption applies to intermediate processes and job workers cannot charge service tax. The Chairman indicated that exemption applies where principal clears on payment of excise duty and that credit would be available if service tax is charged; Board consideration is pending.
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Service tax exemption on job work: whether job workers must claim exemption and whether principals may take credit.
Whether job workers must compulsorily avail the service tax exemption under Notification No.25/2012 ST and whether service tax charged by job workers is admissible as cenvat credit to the principal manufacturer were discussed. Trade argued the exemption is conditional and optional and that service tax paid should be creditable; field officers maintained the exemption applies to intermediate processes and job workers cannot charge service tax. The Chairman indicated that exemption applies where principal clears on payment of excise duty and that credit would be available if service tax is charged; Board consideration is pending.
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