TaxTMI 
TaxTMI 
Serive Tax
08 Jan 2015 
5 Replies 
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Service tax on job work: taxable on labour charges unless activity amounts to manufacture or product is excise-exempt.
Service tax on machining supplied as job work turns on whether the activity amounts to manufacture and on excise treatment of the principal's final product. If machining is non-manufacturing processing and the principal returns machined castings into excisable final products with duty paid, the job-worker need not pay service tax on job-work charges. If machining produces finished goods amounting to manufacture, or the principal's final products are excise-exempt, the job-worker's service charges become liable to service tax. (AI Summary)
Service tax on machining supplied as job work turns on whether the activity amounts to manufacture and on excise treatment of the principal's final product. If machining is non-manufacturing processing and the principal returns machined castings into excisable final products with duty paid, the job-worker need not pay service tax on job-work charges. If machining produces finished goods amounting to manufacture, or the principal's final products are excise-exempt, the job-worker's service charges become liable to service tax. (AI Summary)
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.