Chargability of service tax on jobwork by jobworker

[nagarjuna reddy]

Sir,

one of our client is doing job work on parts sent by other companies,activity is resharpening to parts

​whether he is to charge service tax on job work provided ?

AI Summary

Service Tax Exemption on Resharpening Job Work: No Tax if Final Products Are Cleared with Excise Duty Payment. A query was raised regarding the applicability of service tax on job work involving resharpening parts sent by other companies. Three responses were provided. The first response indicated that service tax is not applicable if the final products are cleared with the payment of excise duty. The second response emphasized that the key factor is the chargeability of duty on finished goods, with specific exemptions provided in certain cases. The third response referenced Notification No. 12/2012-ST, stating that no service tax applies if the principal manufacturer pays the appropriate duty on goods after job work.