Service Tax on Jobwork

[Asked by Guest]

Sir,

Service tax applicable on jobwork if final product is Excisable.

[Rajagopalan Ranganathan]

Sir,

Sl. No. 30 (c) of Notification No. 25/2012-ST dated 20.6.2012 (w.e.f. 1.7.2012) as amended states that any goods excluding alcoholic liquors for human consumption, on which appropriate duty is payable by the principal manufacturer is exempted from payment of service tax.

[Mahir S]

If excise duty is paid on the final product by the principal manufacturer, then service tax is not applicable on jobwork of such goods

AI Summary

Service tax exemption on jobwork: no service tax where the principal manufacturer pays excise duty on the final product.
Service tax on jobwork is exempt where the principal manufacturer pays appropriate excise duty on the final goods; the exemption covers goods on which duty is payable by the principal and excludes alcoholic liquors for human consumption. The controlling criterion is payment of duty by the principal manufacturer rather than the excisability of intermediate inputs.