R/sir,
Can In house / Factory Job work possible . We are registered with Central Excise and we have purchase the Input material . Job worker done our finished product in the factory plant with use all our resources and issued us Job work charges invoices per Nos .
Above procedure correct or not ? can any Service tax liability in this procedure ?
Please guide us .
Thanks and Regards,
SNEHAL SHAH
Understanding Tax Implications: No Service Tax on Manufacturing Job Work; Reverse Charge Applies for Manpower Supply. A user inquired about the tax implications of in-house job work done in a factory where input materials are used, and job work charges are invoiced. One response explained that if the job work constitutes manufacturing, no service tax is applicable. However, if the job worker is considered a manpower supply, the service receiver must pay service tax under the reverse charge mechanism. Another response highlighted that if the work is classified as a manpower supply, service tax applies unless it is a piece-rate contract. Additionally, excise duty considerations and specific notifications may affect the tax obligations. (AI Summary)
TaxTMI 
TaxTMI 
