TaxTMI 
TaxTMI 
INDIAN COMPANY SUBSIDIARY OF INTERNATIONAL COMPANY, IMPORTS CERTAIN GOODS FROM PARENT COMPANY FOR JOBBING PURPOSES, DO THE JOB MACHINERY WORK HERE IN INDIA AND RESEND THE GOODS TO INDONESIA FOR SALE THERE. NO IMPORT DUTY IS BEING PAYABLE AS FOR JOBBING IMPORT AND THEN EXPORT AFTER JOB WORK, TAKEN LICENSE FROM CUSTOMS FOR CONCESSIONAL RATE OF DUTY FOR THE SAME. WHETHER ANY EXCISE OR SERVICE TAX LIABILITY ARISES ON CHARGES TAKEN FROM THE PARENT COMPANY AS LABOUR SERVICE CHARGES. WHETHER CENVAT AVAILABLE OF THE INPUT SERVICES USED IN SAID JOB WORK.
CENVAT CREDIT / TAX LIABILITY
13 Jun 2015 
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Cenvat credit eligibility depends on whether job work amounts to manufacture; exports affect service tax and refund rights.
Export of job worked goods prevents imposition of excise duty; service tax applies only if the job work does not amount to manufacture, though exports exempt the service. Cenvat credit on inputs, capital goods and input services is available when the job work qualifies as manufacture; otherwise credit cannot be availed but may be claimed as a refund under the Cenvat Credit Rules for exported job worked goods. (AI Summary)
Export of job worked goods prevents imposition of excise duty; service tax applies only if the job work does not amount to manufacture, though exports exempt the service. Cenvat credit on inputs, capital goods and input services is available when the job work qualifies as manufacture; otherwise credit cannot be availed but may be claimed as a refund under the Cenvat Credit Rules for exported job worked goods. (AI Summary)