Job Work done in house the Factory

[SNEHAL SHAH]

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

AI Summary

Manpower supply service: reverse charge may apply where job worker uses principal's materials and resources, altering service tax liability.
Whether in-house job work attracts service tax turns on substance: processes amounting to manufacture are not taxable services, while job workers who supply only labour using the principal's materials and resources may be treated as providing manpower supply, bringing the service tax liability onto the recipient under the reverse charge mechanism; contractual form (wage-sheet versus piece-rate) and excise treatment of the final product affect the tax outcome.