Service Tax on Job work done by printing press.

[Suneet Singla]

Sir,

My query is whether Job work done by a printing Press is liable to service tax & also tell whether entry no.30A of mega exemption 25/2012 is available for all type of printing job work done by printing press & sir plz provide some case studies in support of this query.

[YAGAY andSUN]

Such exemption is only available to intermediate production process only.

30. Carrying out an intermediate production process as job work in relation to -
(a) agriculture, printing or textile processing;

[Suneet Singla]

Sir, kindly suggest some remedy from liability of service tax on job work done by printing press in nature of pure labour.

[Ganeshan Kalyani]

Service tax is applicable. If the condition of the entry no 30A of mega exemption notification is satisfied then no service tax.

[KASTURI SETHI]

Suneet Singla Ji,

Pl. go through carefully what I want to say.

What I understand you are printing books, brochures, leaflets, booklets, pamhlets, calendar, greeting cards, magazines, computer sheets etc. This type of printing amounts to manufacture and fall under Chapter 49 of Central Excise Tariff Act, 1985. These are excisable goods and Calendars, greeting or wedding cards are not exempted from CE duty. However, threshold exemption limit of ₹ 1.50 crore is available under SSI exemption. If I have assumed correctly, you are exempted from Service Tax as your activity is covered under Section 66 D (f) of the Finance Act which is extracted below:-

"SECTION 66 D[(f) services by way of carrying out any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption;]"

So better option for you is to resort to Section 66 D (f) (NEGATIVE LIST) rather than looking towards Mega Exemption Serial No.30 (a) of Notification No.25/12-ST as amended.

Do not think about Serial No.30(a) of Notification No.25/12-ST

[YAGAY andSUN]

We endorse the view of Sethi Sir.

[Johit Gambhir]

Sir Kindly Suggest

I make medicines boxes for pharma manufacturers, in this process I purchase paper / paperboard get it printed from different printers then i laminate / die cut / paste the box myself and supply to pharma manufacturers.

my query is how i should pay tax (only Printing Job) to my printers & which tax should i claim after finalizing the goods

our last year turnover was approx 1.5 crore

thanks

AI Summary

Service tax on printing job work depends on whether the activity is an intermediate process or amounts to manufacture. Service tax on printing job work hinges on whether the work is an intermediate production process-exempt when so-or amounts to manufacture, in which case it falls outside taxable services under the negative-list principle; factual classification of the printing activity determines applicability of the job-work exemption and any threshold-based relief.