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 on jobwork is not leviable where finished goods attract excise duty and are cleared by the principal.
If processed goods are cleared as finished products with payment of excise duty by the principal manufacturer, service tax on the job work is not leviable. The operative test is whether the finished goods attract excise duty; intermediate production processes performed as job work in relation to goods on which appropriate duty is payable by the principal are excluded from service tax under the notification.