JOB WORK OF POWDER COATING

[PARVEEN ARORA]

Sir

Proprietory Concern is running the Powder coating Job work activities from delhi & UP and he doing the job for their client which is situated in Haridwar (Excise exempted Zone) so pl give opinion whether we will cover in EXCISE or SERVICE TAX.

thanks & regard

 

 

AI Summary

Job work taxability: powder coating may not attract excise if goods returned; service tax exempt if principal pays appropriate duty.
Powder coating job work where goods are received from a manufacturer and returned to that manufacturer within the job-work period is not treated as manufacture for central excise and ordinarily attracts no excise duty on the job worker; intermediate production processes including powder coating are exempt from service tax if the principal manufacturer pays the appropriate duty on the processed goods or on goods incorporating them, whereas if the process amounts to manufacture or appropriate duty is not paid, alternate excise/service tax consequences arise.