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

Service tax on job work: textile processing is exempt and mechanical job work may be non-taxable where excise on final goods is paid.
Service tax does not arise on job work that is textile processing exempt under Notification 25/2012. Mechanical job work on supplied tools or components likewise attracts no service tax where the principal manufacturer pays excise duty on the final goods; consideration must be given to whether the supplier undertakes further processing, whether excise exemption applies to the supplier due to threshold limits, and to factual aspects such as absence of power use.