SERVICE TAX NOT BE APPLIED ON JOB WORK MATERAIL BEING RECEIVE ON 57f4

[ace nitriders]

Dear Sir,

on which notification or rule it is cleared that job worker should not add service tax on materail being issued on 57F4 for processing on returnable basis

AI Summary

Clarification on Service Tax for Job Work Under Rule 57F4: Manufacturing Exempt, Business Auxiliary Service May Apply. A user inquired whether service tax should be applied to materials received for job work under Rule 57F4. The response clarified that Central Excise duty and Service Tax are distinct, and job work is exempt from service tax if it constitutes manufacturing, as its cost is included in the final product's price. If the job work does not amount to manufacturing, it is considered a Business Auxiliary Service, where service tax may apply. The response referenced specific rules and notifications, emphasizing that only one of the taxes should be charged, not both.