Serive Tax

[JITENDER THAREJA]

BASICALLY WE HAVE A EXCISE UNIT AND WE ARE ALSO PAYABLE OF SERVICE TAX. IF SOMEONE COMPANY APPROACHED US FOR THE MACHININGOF THEIR CASTING FROM US. THAN WHAT WILL THE PROCEDURE TO PAY THE SERVICE TAX.

AI Summary

Machining Company Seeks Clarity on Service Tax for Job Work: Only Labor Charges Taxed Unless Manufacturing Involved A company involved in machining castings is seeking clarification on service tax obligations. They receive materials from another company for job work, questioning whether service tax applies to the machining charges or both the job work and material value. Responses indicate that service tax is generally applicable only to labor charges unless the activity constitutes manufacturing or the final product is exempt from excise duty. If the machining does not amount to manufacturing and the principal pays excise duty on the final product, service tax is not required on job work charges.