Job Work and no materials are involved

[Alevoor Raghavendra]

Dear Sir,

My clients are doing purely job work. For example, if the tools are given, they does the job work as per the requirement of the customer like bending, turning etc. If the fabric is given, they do the finishing. No materials are used. For example steering shaft. The job work will be to thread it and so on. Please clarify whether to add the service tax on the same.

Regards,

A R Bhat

AI Summary

Job Workers Exempt from Service Tax if Principal Manufacturer Pays Excise Duty; Textile Job Work Exempt Under Notification. A client inquires about the applicability of service tax on job work where no materials are involved, such as bending or finishing tasks. A respondent clarifies that if the principal manufacturer pays excise duty on the final goods, the job worker is not liable for service tax. Additionally, job work on textiles is exempt from service tax under a specific notification. For processes like bending and turning, if the supplier pays excise duty or is exempt due to not exceeding the threshold, the job worker is not liable for service tax. Activities are conducted without power aid.