Jobworker registration and rate of service Tax

[Rajkumar Chandnani]

If job worker's turnover exceeds the prescribed threshold, 20 lakhs he will have to take registration as he is a service provider. how much service tax is applicable to him thereafter and weather principal can take ITC

[MUKUND THAKKAR]

All other services not specified elsewhere

18%

With Full ITC

[Ramesh Kothari]

It's 5% on Job invoice

Yes ITC available to Principle

 

AI Summary

Jobworker registration required once turnover exceeds threshold; applicable tax rate disputed, principal entitled to input tax credit. Jobworker registration is required once a job worker's turnover exceeds the prescribed threshold and the job worker is treated as a service provider. Advisory replies differ on the applicable levy-one stating 18% as an 'all other services' rate with full input tax credit, another stating a 5% charge on the job invoice-but both confirm that the principal may claim input tax credit on the jobwork service.