TaxTMI 
TaxTMI 
Sir,
Service tax applicable on jobwork if final product is Excisable.
Service Tax on Jobwork
25 Sep 2015 
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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. (AI Summary)
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. (AI Summary)