We are 100 percent EOU and if we sent PP mats to Job work for rubber packing . In this case Job worker using their own backing compund .The backing compund materilas is not an duty releated materials and they billing us molding charges PP mats . In this case central excise have any objection ?
PP mats is 100 percent EOu products and Job worker make this as rubber molded PP mats .
Job worker need to pay service tax or any other charges for this work.
Please clarify
Debate on Service Tax Applicability to Job Work Charges for EOUs Under Works Contract Service; Examining Exemption Options. A discussion on a forum addresses tax implications for a 100% Export Oriented Unit (EOU) sending polypropylene mats for job work, where the job worker uses their own rubber compound for backing. The query seeks clarification on whether service tax applies to the molding charges. A participant suggests that service tax is applicable under Works Contract Service due to the transfer of property in goods. They also discuss options for handling the transaction, including purchasing the rubber compound from the job worker, which could allow for exemptions under a specific notification. Further clarification on tax details is requested. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
