Servie Tax on Job work Processing

[Abdul Razack Basha]

Dear Sir,

We are doing job work for processing of Electronic Components for EOU unit, EOU unit sending 100 percent raw materials and also capital goods to us and we do some process and send back to  EOU along with wastage and balance materials after processing.  We are raising Labour Invoice in favour EOU unit. Please clarify Service Tax applicable for this Job work (Excisable Commodities) Invoice. (Value will be more than Rs.10.00 lakhs perannum)

Also we let-out our property and charging Service tax due to annual rental value will be more than Rs.10.00 lakhs.

As per my knowledge job work for excisable commodity will not attract any service tax/ED.

So please clarify the link between these two income Rental Income (Service Tax Applicable) and Job work Income (Service Tax not applicable) in service tax point of view.

Regards

Abdul Razack

AI Summary

Job Work for EOU Exempt from Service Tax Under Notification No. 25/2012-ST; Rental Income Over Rs. 10 Lakhs Taxable. A business performing job work for an EOU unit processes electronic components using materials and capital goods provided by the EOU. They seek clarification on whether service tax applies to their labor invoice, which exceeds Rs. 10 lakhs annually. The consensus among respondents is that if the job work constitutes an intermediate production process in manufacturing excisable goods, it is exempt from service tax under Notification No. 25/2012-ST. Additionally, job work resulting in a new commodity is not subject to service tax. Rental income, however, is taxable due to its value exceeding Rs. 10 lakhs annually.