Service Tax Laibility

[kamal negi]

Hello Sir This is Kamal Negi my query is following:-

1) We are a excisable unit situated in sonepat (HR), can we do job work for a unit situated in Exempted Zone like Uttarakhand & Himanchal and what will be role for Service Tax.

2) We are not registered in Excise but registered with service tax, can we do job work of a excisable unit giving us material on terms of 62% recovery of 100% material at conversion charge of ₹ 8/- Per Kg. We are receiving material from franchise of excisable unit and sending material after processing to another job worker on behalf of excisable unit for further process. Please clear service tax role and if any other laibility.

Kindly reply sir.

Rgds

K.S.Negi

AI Summary

Service Tax Obligations for Job Work in Exempt Zones: Key Points on Registration and Notification No. 214/86-CE. A user inquired about the service tax obligations for an excisable unit in Sonepat conducting job work for a unit in an exempted zone like Uttarakhand and Himachal. The user also asked about service tax implications when not registered in excise but registered with service tax, while processing materials from an excisable unit. Respondents agreed that if the process amounts to manufacturing, no service tax is applicable; otherwise, it is. They emphasized the need for registration with the Central Excise Department and clarified conditions under Notification No. 214/86-CE regarding duty payment on job-worked goods.