Service Tax on Jobwork

[Guest]

Sir,

Service tax applicable on jobwork if final product is Excisable.

AI Summary

Service Tax Exemption on Jobwork: Notification No. 25/2012-ST Confirms No Service Tax if Excise Duty is Paid on Final Product. A query was raised regarding the applicability of service tax on jobwork when the final product is excisable. Two responses were provided. The first response referenced Notification No. 25/2012-ST, indicating that goods, excluding alcoholic liquors, on which the principal manufacturer pays appropriate duty, are exempt from service tax. The second response confirmed that if excise duty is paid on the final product by the principal manufacturer, service tax is not applicable on the jobwork for those goods.