about doing job work of non-excisable unit

[MEHUL ASHAR]

Respected Sir,

One of my client is a excisable manufacturer & he wants to do the job work of a non-excisable unit.Is it possible?If it is possible then what is the procedure for that.Please reply.

THANKING U

[PARTHASARATHY V]

Job worker can do the job work on the Excisable goods or non excisable goods, provided

1. If the goods are excisable - need to receive under job work challan - further any additional inputs from the job worker end not to be added. If it is required, he has to raise separate Invoice for the materials added, in which he has to charge the Excise duty for the goods used, labour charges as per the Valuation Rule 6 of 2006.

2. In case the goods are non excisable goods, the job worker can carried out the job work but provided he has to discharge the service tax liability for the Job work carried out for the non excisable goods produced.

No exemption of service tax available for the second category.

[Mahir S]

Sir,

If the goods itself are non exicsable, then service tax liability on the job worker.

If the unit whose job work is carried out is non-excisable by virtue of exemption notification or threshold limit, then no service tax liability.

[MEHUL ASHAR]

Thank u Sir 4 ur reply.It solved my confusion

AI Summary

Service tax liability arises for job work on non-excisable goods; excisable job work requires job work challan and invoicing. For excisable goods, receipt for job work must be under a job work challan and any additional inputs added by the job worker must be separately invoiced with applicable excise duty and labour valuation. For non-excisable goods, the job worker incurs a service tax liability for the job work performed, whereas job work relating to units non-excisable by exemption notification or threshold exemption may not attract service tax.