Dear Sir,
We are doing Job work for various customer as i know about the tax structure for making job work invoices we have to charge on sales tax on the 30% value of the total job work service.
Can you please let us we are liable to pay excise duty or service tax on the job work invoices for Excise/Service Tax registered or non registered customer.
Please note we are not a maker of final product.
Regards
Sandeep
Understanding Tax Obligations: Service Tax vs. Excise Duty for Job Work Services and Key Exemptions Explained. A user inquired about the tax obligations for job work services, specifically whether excise duty or service tax applies. Respondents clarified that service tax is applicable unless the job work process qualifies as 'manufacture,' which would then potentially subject it to excise duty, contingent on turnover thresholds. The distinction between service tax and excise duty hinges on whether the process transforms an item into a commercially different product. Exemptions may apply, and further details are necessary to determine specific tax liabilities. It was emphasized that both taxes cannot be charged simultaneously. (AI Summary)
TaxTMI 
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