Service Tax on Job Work to SSI

[Lakshmi AnandK]

Hi,

I am aware that service tax is not payable on job work done to a principal manufacturer whose product is libable to excise duty.

Is service tax applicable on job work (not amounting to manufacture) done to a firm availing SSI exemption for turnover below 1.5 cr but paying duty for the reset of the turnover?

Thank you,

KLA

[Madhukar N Hiregange]

The job worked goods if liable to suffer duty then ST could be exempted.

AI Summary

Service tax on job work: exemption may apply where job-worked goods are liable to excise duty. Service tax on job work for a principal availing SSI concession depends on whether the job-worked goods are liable to excise duty; where those goods are excise-liable, the service element of the job work can be exempted from service tax, irrespective of the principal's SSI exemption for other turnover.